SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a class action has been filed on behalf Coinbase Global Inc. (NASDAQ: COIN) Class A common stock shareholders pursuant to the Company's April 2021 initial public offering ("IPO"). Coinbase provides financial infrastructure and technology for the cryptoeconomy.
If you suffered a loss due to Coinbase Global, Inc.'s misconduct, click here.
Coinbase Global, Inc. (COIN) Made False and Misleading Statements in its Offering Materials Supporting its IPO
According to the complaint, Coinbase held its IPO on April 14, 2021, registering for the resale of up to 114,850,769 shares of its Class A common stock by registered shareholders. The Registration Statement touted the Company's "robust backend technology system" and emphasized its liquidity and capital resources, noting, "We believe our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months." However, the Offering Materials were false and misleading and failed to state that, at the time of the IPO, the Company required a sizable cash injection and 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.
On May 17, 2021, Coinbase announced plans to raise approximately $1.25 billion via a convertible bond sale, undermining its assurances in the Offering Materials that the Company's existing cash and cash equivalents were sufficient. On this news, the Company's stock declined more than 3.7%, to close at $239.00 per share on May 18, 2021. Then, on May 19, 2021, as the value of cryptocurrencies radically plummeted, Coinbase revealed technical problems experienced by users, including "delays… due to network congestion" effecting "those who want to get their money out." On this news, Coinbase's stock declined nearly 6%, to close at $224.80 per share on May 19, 2021.
If you purchased shares of Coinbase Global, Inc. (COIN) pursuant to the Company's IPO, you have until September 20, 2021, to ask the court to appoint you lead plaintiff for the class. Contact us today to discuss your legal options. All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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