Coinbase Faces Lawsuit Over Undisclosed UK Regulatory Breach & Data Leak
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A proposed class-action lawsuit alleges Coinbase misled investors by not disclosing a breach of its UK Financial Conduct Authority (FCA) agreement before a May data leak that tanked its stock price.
Filed by investor Brady Nessler, the suit claims Coinbase’s stock fell 7.2% after the May 15 breach disclosure, costing shareholders millions. Though shares recovered the next day, the lawsuit argues the company violated securities laws by withholding material risks.
The breach involved bribed employees leaking user data, prompting a $20 million extortion demand. Coinbase warned of potential $400 million in damages.
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