Daniel Walker
Coinbase is now at the center of a class action lawsuit filed by shareholders who claim the crypto giant failed to disclose key events that led to a significant drop in its stock price. The allegations center around a delayed disclosure of a data breach and a regulatory agreement violation in the UK.
Filed in the U.S. District Court for the Eastern District of Pennsylvania, the lawsuit alleges that Coinbase did not promptly inform investors about a December data breach where cybercriminals reportedly bribed employees to access sensitive user data. This information was only disclosed to the public on May 15, 2025, causing the company’s stock to plummet 7.2%, closing at $244 that day.
According to the complaint, investors suffered substantial financial damage, with plaintiff Brady Nessler stating that the companyโs โwrongful acts and omissionsโ directly led to these losses.
Undisclosed UK Regulatory Breach Fuels Investor Concerns
The suit further accuses Coinbase of failing to disclose that its UK-based subsidiary, CB Payments, violated a 2020 agreement with the Financial Conduct Authority (FCA). This omission adds to a growing list of alleged failures in transparency stretching back several years.
Massive Financial Impact and Ongoing Recovery
Coinbase estimates that the data breach fallout could cost the company between $180 million and $400 million in reimbursement and remediation expenses. Despite the sharp decline following the news, Coinbaseโs stock has seen a partial recovery, closing at $263.16 on May 23, according to Google Finance.
The lawsuit also names CEO Brian Armstrong and CFO Alesia Haas as co-defendants, targeting them for their alleged role in failing to properly disclose the breach and regulatory violations.
Lawsuit Seeks Damages for Long-Term Shareholders
The class action aims to recover damages on behalf of investors who purchased Coinbase shares between April 14, 2021, and May 14, 2025. Shareholders argue that if the breach and regulatory issues had been disclosed earlier, they could have avoided substantial losses.
