Catenaa, Wednesday, May 28, 2025-Cryptocurrency exchange Coinbase is facing a class action lawsuit after shareholders accused the company of failing to disclose a December data breach, which they allege led to a significant stock price decline earlier this month.
Filed Thursday in the US District Court for the Eastern District of Pennsylvania, the lawsuit claims Coinbase committed “wrongful acts and omissions” that misled investors, resulting in substantial financial losses.
Investor Brady Nessler, the lead plaintiff, said the company’s lack of timely disclosure surrounding the breach harmed stockholders.
Coinbase revealed on May 15 that hackers bribed employees in December to gain access to customer data.
Following the announcement, shares dropped 7.2% to $244.
The company has estimated potential costs related to the incident, including remediation and reimbursements, between $180 million and $400 million.
The lawsuit also alleges Coinbase failed to disclose that its UK-based subsidiary, CB Payments, violated a 2020 agreement with the Financial Conduct Authority.
The filing outlines years of alleged nondisclosures that it claims misled investors and violated securities laws.
Coinbase CEO Brian Armstrong and CFO Alesia Haas are also named as defendants. The suit seeks damages for individuals who purchased Coinbase stock between April 14, 2021, and May 14, 2025.
As of May 23, Coinbase shares had rebounded slightly, closing at $263.16. The company has not issued a public statement on the lawsuit.
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