Glancy Prongay Wolke & Rotter LLP, a Leading Securities Fraud Law Firm Encourages Coastal Financial Corporation (CCB) Shareholders To Inquire About Securities Fraud Class Action

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Coastal Financial Corporation (“Coastal” or the “Company”) (NASDAQ: CCB) securities between October 28, 2024 and July 29, 2026, inclusive (the “Class Period”). Coastal Financial Corporation investors have until December 1, 2026 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR COASTAL FINANCIAL CORPORATION (CCB) INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS

What Happened?

On July 30, 2026, Coastal announced its second quarter 2026 financial results and held an earnings call. During the call, the Company acknowledged that the quarter included “significant and unusual items that warrant a direct explanation.” Coastal reported a surprise GAAP net loss of $42.1 million, driven primarily by a $68.8 million credit expense associated with a single CCBX partner relationship. The credit expense consisted of a $46 million valuation adjustment to the related credit enhancement asset and a $22.8 million provision for credit losses associated with the partner’s indemnification obligations. The Company further disclosed that the affected portfolio consisted of approximately $500 million in underlying loans, together with the related reimbursement exposure.

On this news, Coastal’s stock price fell $30.75 per share, or 43.5%, to close at $39.91 per share on July 30, 2026, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) the credit quality of a substantial CCBX partner loan portfolio, comprising approximately $500 million in loans and nearly 23% of all CCBX loans, had materially deteriorated; (ii) as a result of that deterioration, Coastal faced significant exposure to credit losses notwithstanding Defendants’ repeated representations concerning the credit protections provided by its CCBX partner agreements; and (iii) Coastal’s risk management and credit monitoring practices were inadequate to identify, adequately account for, and mitigate the deterioration of the CCBX partner loan portfolio and the resulting risks to Coastal; and (iv) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired Coastal Financial Corporation securities during the Class Period, you may move the Court no later than December 1, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Charles H. Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: [e-mail]
Telephone: [phone],
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

If you inquire by email, please include your mailing address, telephone number and number of shares purchased.

To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.