Coinbase is facing a class action lawsuit for alleged securities fraud

According to Chain Catcher news, as reported by PR Newswire, Kessler Topaz Meltzer & Check, LLP stated that Coinbase Global, Inc. ("Coinbase," NASDAQ: COIN) violated federal securities laws, including omissions and fraudulent misstatements related to the company's business, operations, and prospects.

Specifically, the firm believes that Coinbase made false or misleading statements or failed to disclose that Coinbase insiders suddenly increased their holdings of Coinbase Class A common stock in the registration statement and other documents submitted to the SEC related to the company's public offering in April 2021. On the first day of public trading for Coinbase stock on April 14, 2021, several Coinbase insiders sold over 7 million shares of Coinbase Class A common stock, including more than 1.3 million shares at the opening of the day, collectively generating over $2.7 billion from such sales.

It is reported that Kessler Topaz Meltzer & Check, LLP is urging Coinbase investors to seek appointment as lead plaintiff in the class action through this law firm or other attorneys no later than October 3, 2022. (prnewswire)