The law firms Pollock Cohen LLP and Dilendorf Law Firm PLLC are looking for victims who were defrauded by Coinbase Global Inc.. The two firms seek to lead a proposed class action against Coinbase for securities fraud in relation to Coinbase’s 2021 IPO. The proposed class action seeks to recover on behalf of those who purchased Coinbase Class A common stock. Individuals who purchased Coinbase shares on or after April 14, 2021 and suffered losses have until September 20, 2021 to apply for lead plaintiff and represent the class.
On April 14, 2021, Coinbase went public, listing nearly 115 million shares on the NASDAQ stock exchange. The stock began trading at $381 share. However, by July 22, 2021, the value of those shares had plummeted to only $208 per share.
In the IPO’s Offering Materials, Coinbase bragged that it had enough cash on hand to operate for at least a year. But only one month after the offering, Coinbase announced it planned to take on $1.25 billion in debt. And in the IPO, Coinbase touted itself as a “safe, trusted, and easy-to-use platform” that could supposedly meet “real time, and 24/7/365 demands of crypto asset markets.” But barely a month had passed when Coinbase revealed that it suffered from “delays … due to network congestion,” which prevented people from withdrawing their coins when they wanted.
Then, on July 22, 2021, a proposed class action lawsuit was filed in the Northern District of California (Case No. 3:21-cv-05634). It alleges that Coinbase mislead the public in the IPO for not disclosing that it actually needed a significant injection of cash to operate and that its platform was increasingly susceptible to service disruptions.
Investors who (1) purchased COIN stock pursuant and/or traceable to the Company’s IPO, and (2) who are interested in applying to be lead plaintiff in order to effectively lead the litigation and maximize class recovery, are encouraged to contact Pollock Cohen and Dilendorf Law. The law firms may be able to recover your losses without you paying anything out of pocket.
If you believe you would be an excellent representative to lead the class, please visit www.coinbaseipoclassaction.com or email firstname.lastname@example.org.
Your ability to recover as a member of the class is not affected by your decision not to seek lead-plaintiff status.
Raphael Janove, Esq.