Coinbase Investors File Suit Over Alleged Mishandling of User Data Leak
Coinbase is facing a class action lawsuit from shareholders who allege the crypto exchange failed to promptly disclose a serious data breach and a regulatory violation, both of which contributed to a drop in the company’s stock price.
The lawsuit, filed Thursday in the US District Court for the Eastern District of Pennsylvania, claims investors suffered significant financial losses as a result of the company’s omissions.
According to court filings, the lead plaintiff, investor Brady Nessler, argues that Coinbase kept shareholders in the dark about key risks, including a breach of a 2020 agreement by its UK subsidiary, CB Payments, and a December cyberattack that compromised the personal data of tens of thousands of users.
Coinbase didn’t return Crypto news’ request for comment by press time.
