Kessler Topaz Meltzer & Checker, LLP: Latest Deadline Reminder for Coinbase Global Inc. Investors
Radnor, Pa .– (Newsfile Corp. – Aug. 4, 2021) – Law firm Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed against Coinbase Global, Inc. (NASDAQ: COIN) (“Coinbase”) on behalf of those who have purchased or acquired Coinbase Class A ordinary shares in accordance with and / or traceable to the registration statement and prospectus (collectively, the âoffering documentsâ) for the resale of up to 114,850,769 Class A ordinary shares, whereby Coinbase began trading as a public company on or around April 14, 2021 (the âOfferâ).
Deadline reminder: investors who bought or acquired Coinbase class A common stock in accordance with and / or traceable to the Offer may, no later than September 20, 2021, seek to be appointed as principal applicant representative of the group. For more information or to find out how to participate in this dispute, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; by e-mail to [email protected]; or Click on https://www.ktmc.com/coinbase-global-class-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=coinbase
According to the complaint, Coinbase is “fueling the crypto-economy”, providing a “trusted platform” for sending and receiving Bitcoin and other digital assets built using blockchain technology to around $ 43 million. retail users, 7,000 institutions and 115,000 ecosystem partners in over 100 countries.
On April 14, 2021, Coinbase filed its prospectus on a Form 424B4, which is part of the registration statement. Coinbase has registered for the resale of up to 114,850,769 Class A common shares by registered shareholders. According to the registration statement, the resale of Coinbase shares was not underwritten by any investment bank and the registered shareholders would have chosen whether or not to sell their shares. Any such sales, if any, would be brokerage transactions on NASDAQ, and Coinbase would apparently not receive any proceeds from the sale of Class A common stock by registered shareholders. Thus, Coinbase’s operations would continue to be funded by cash flow from operating activities and net proceeds from the sale of convertible preferred shares. As of December 31, 2020, Coinbase had $ 1.1 billion in cash and cash equivalents, excluding restricted cash and customer trust funds.
The complaint alleges that a month later, Coinbase’s high-flying promise came to a screeching halt as Coinbase recognized the need to raise capital and revealed performance issues that prevented users from trading crypto. currencies. On May 17, 2021, Coinbase announced plans to raise around $ 1.25 billion through a convertible bond sale. Then, on May 19, 2021, Coinbase revealed technical issues, including “delays … due to network congestion” affecting those who wish to withdraw their money.
Following this news, Coinbase’s share price fell $ 23.44 per share, or nearly 10%, on two consecutive trading sessions, to close at $ 224.80 per share on May 19, 2021. At the time of filing the complaint, Coinbase stock was trading at $ 208.00 per share. share, a decrease from its April 14, 2021 opening price of $ 381.00 per share.
The complaint alleges that the offer documents were false and misleading and failed to state that at the time of the offer: (1) Coinbase required a significant cash injection; (2) Coinbase’s platform was sensitive to service level disruptions, which were increasingly likely to occur as Coinbase extended its services to a wider user base; and (3) as a result of the foregoing, the defendants’ positive statements about Coinbase’s business, operations and outlook were materially misleading and / or lacking reasonable basis.
Coinbase investors can, no later than September 20, 2021, seek to be appointed as the lead representative of class claimants through Kessler Topaz Meltzer & Check, LLP, or another lawyer, or may choose to do nothing and remain an absent member of the class. A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be named the Principal Plaintiff, the Court must determine that the Class Member’s claim is typical of the claims of other Class Members, and that the Class Member will adequately represent the Class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country regarding securities fraud, breach of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force in corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors in the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and participate in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 route du Roi de Prussia
Radnor, Pennsylvania 19087
(844) 887-9500 (toll free)
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/92140