Coinbase and its top executives, Brian Armstrong and Paul Grewal, are facing a securities class action lawsuit over its NASDAQ falling. A shareholder of Coinbase has reportedly filed this case against the leading cryptocurrency exchange for purportedly misleading investors ahead of its public listing about the financial condition of the company and its pliability as a crypto trading platform.
The class action was filed on Thursday by Scott + Scott, a law firm in the California Northern District Court, and it names Donald Ramsey, one of the shareholders of Coinbase as a plaintiff, both individually and on behalf of all other investors.
Ramsey has reportedly traced his claims against the firm under the United States Securities Act and has dispensed evidence that is drawn from the regulatory filings of Coinbase with the US SEC, press releases, and other information that is publicly available.
As revealed, Ramsey is accusing Coinbase, its CEO Brian Armstrong, and CLO Paul Grewal of making “materially misleading statements” in their offering brochures at the time of their listing.
The class action alleges:
In addition to this, the class action gathers evidence from peer media reports shared in May and cites a report from Forbes on the bond sale announcement that said: