Coinbase Shareholders Sued Exchange For Providing False Information – Bits Media

Shareholders file class action lawsuit against Coinbase, accusing her of providing false financial information when listing shares on the Nasdaq stock exchange.

The lawsuit was filed in the Northern California District Court by Scott Law Firm + Scott. As defendants Cectacle CENBASE CEO Brian Armstrong (Brian Armstrong), Head of the Legal Department of Coinbase Pol Gruel (Paul Grewal) and other top managers.

Coinbase shareholder Donald Ramsi (Donald Ramsey), acting, claims, that before Coinbase to the stock market, its leaders made statements, not having reasonable grounds.

According to the claim, The exchange provided investors with inaccurate information about their financial situation, And the system of the trading platform was unstable. Ramsey came to this conclusion, After analyzing reporting, Submitted Coinbase to the US Securities and Exchange Commission (SEC), Coinbase press releases, Analysting reports and other information about the exchange, open -domestic.

“During the placement of shares on the stock exchange, Coinbase platform required a significant cash infusion. Besides, Coinbase was subjected to technical failures in maintenance, which arose more and more often as the exchange services are scaled for a growing user base ", - indicated in the collective claim.

When the public found out about that, that statements by Coinbase leaders diverge from reality, Coinbase shares cost decreased, The plaintiffs say. Coinbase shares began to bargain 14 April from the mark $381, And by then, how a complaint was filed with respect to Coinbase, The cost of its shares dropped to $ 208.

Investors refer to the events of mid -May, when Coinbase reported the need to raise funds, announcing plans to attract $1.25 billion due to the sale of convertible bonds. After this, Coinbase shares fell sharply on 10% For two trading sessions, Added Ramsey.

According to him, Investors were surprised by the terms of bond output, Since Coinbase became a publicly traded company in mid -April. Considering, that the exchange entered the stock market through a direct listing, which does not mean the issue of new shares or attracting capital, then the exchange should not need cash. Therefore, the Coinbase decision to release bonds a month after placement on Nasdaq caused investors many questions.

As for technical problems, indicated in the lawsuit, 19 Mayers Coinbase really encountered maintenance problems. This can be explained by a massive tributary on the exchanges of bitcoins - traders tried to have time to sell them during the "bear market". Due to this, Many exchanges experienced overload. However, Ramsey is convinced, that such technical problems do not comply with the statement of Coinbase about that, that on this exchange you can easily buy and sell cryptocurrencies.

Almost simultaneously on Coinbase, another lawsuit was filed in the same court. The Northern District Court of California will also consider the case of misleading investors during a lottery with remuneration in DogE.