Class Action

The cryptocurrency custody company Bakkt is facing a class action lawsuit for alleged "false statements and failure to disclose key information."

ChainCatcher news, according to Cointelegraph, investors in Bakkt Holdings have filed a class action lawsuit against the company and its executives, accusing them of making false or misleading statements and failing to adequately disclose important information related to major clients Webull and Bank of America (BoA), allegedly violating U.S. securities laws.The group of investors claims in the lawsuit that losing Bank of America and Webull would result in a "73% loss in revenue." The documents state that for most of 2023 and 2024, Webull accounted for 74% of Bakkt's crypto services revenue, while Bank of America accounted for 17% of its loyalty services revenue from January to September 2024.On March 17, 2025, Bakkt disclosed that Bank of America and Webull had no intention of renewing the agreement set to expire in 2025, causing the company's stock price to drop more than 27% within the following 24 hours. Investors accuse Bakkt of "misrepresenting the stability and/or diversity of its crypto services revenue" and failing to disclose that this revenue "largely depended on" contracts with Webull. The lawsuit states: "As a result of the defendants' wrongful conduct and inaction, along with the sharp decline in the company's market value, the plaintiffs and other class members suffered significant losses and damages."

A U.S. district judge partially denied Coinbase's motion to dismiss the lawsuit, allowing the shareholder class action to proceed

ChainCatcher news, according to Coindesk, U.S. District Judge Brian Martinotti in New Jersey ruled on the Coinbase shareholder class action lawsuit, partially rejecting Coinbase's motion to dismiss the lawsuit. The lawsuit stems from 2022, where shareholders accused Coinbase of misleading disclosures regarding regulatory risks.The judge found that the plaintiffs made credible allegations regarding Coinbase's behavior when describing the likelihood of the U.S. Securities and Exchange Commission (SEC) taking enforcement action. Judge Martinotti noted in the ruling document: "The plaintiffs adequately demonstrated that the defendant misleadingly described the low probability of the SEC filing an enforcement action, repeatedly emphasizing that its listed crypto assets are not securities." The SEC sued Coinbase in June 2023 for violating federal securities laws, and the case is still ongoing. In the SEC lawsuit, the judge similarly dismissed most of Coinbase's motion to dismiss, indicating that the SEC's allegations have sufficient legal grounds for further proceedings.Although the court supported some of the shareholders' claims regarding regulatory risk disclosures, it dismissed most of the other allegations in the lawsuit. A Coinbase spokesperson responded: "The court agreed to dismiss most of the plaintiffs' claims. The remaining parts are allowed to proceed mainly due to the procedural nature of the motion to dismiss. We are confident that we will stand firm on both factual and legal grounds and look forward to proving this in the subsequent litigation."
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