Coinbase and its top executives, Brian Armstrong and Paul Grewal, are facing a <a href="https://www.law360.com/privateequity/articles/1405936/coinbase-slapped-with-securities-suit-over-public-debut" target="_blank" rel="nofollow noopener">securities class action lawsuit</a> 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. 
<h2>Coinbase and Top Executives Brian Armstrong and Paul Grewal Faces Class Action over NASDAQ Listing</h2>
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 <a href="https://www.cryptoknowmics.com/news/crypto-exchange-coinbase-files-ipo-for-nasdaq-listing/">regulatory filings</a> 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 <a href="https://www.cryptoknowmics.com/news/coinbase-debuts-on-nasdaq-the-first-ever-cryptocurrency-exchange-to-go-public/">listing</a>. 
<h2>The Class Action Faced by the Crypto Exchange</h2>
The class action alleges:

“At the time of the Offering: (1) the Company required a sizeable cash injection; (2) the Company’s platform was susceptible to service-level disruptions, which were increasingly likely to occur as the Company scaled its services to a larger user base.”

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:

“Investors were also likely surprised by the timing of the issue, considering that Coinbase just went public in mid-April via a direct listing (which doesn’t involve issuing new shares or raising capital), signaling that it didn’t require cash. So the company’s decision to issue bonds a little over a month later is likely raising some questions.”

Brian Armstrong, Paul Grewal of Coinbase Faces Securities Class Action Over NASDAQ Listing

Coinbase and its top executives, Brian Armstrong and Paul Grewal are facing a securities class action over NASDAQ falling.

Sahaj is an aspiring journalist with a keen interest in cryptocurrency and the whole concept of Blockchain technology. He is positive about the future potential of Cryptocurrency and Blockchain in shaping the world of finance for good. At present, he is covering the latest developments in the field of the cryptosphere.

Brian Armstrong, Paul Grewal of Coinbase Faces Securities Class Action Over NASDAQ Listing

Top Picks