In light of Coinbase’s continued legal troubles, investors in the company’s shares have been reminded of the deadline for filing a lead plaintiff motion in a securities class action complaint against the business.
Bernstein Liebhard, a legal firm specializing in investor rights, said in a news release dated August 31 that the deadline applies to investors who acquired Coinbase assets between April 14, 2021 and July 26, 2022.
Coinbase is being accused of breaching the Securities Exchange Act of 1934 in a class action filed in the United States District Court for the District of New Jersey.
Notably, the lead plaintiff, who represents the person conducting the case on behalf of other class members, has until October 3, 2022.
Specifics of the Coinbase lawsuit
Coinbase reportedly made false and misleading assertions about its company, operations, and compliance standards, according to the complaint.
Among the contentious components is Coinbase’s storage of client cryptocurrency that might be vulnerable to bankruptcy procedures. In this instance, Coinbase users would be considered unsecured creditors of the exchange.
This comes as a growing number of crypto businesses, like Coinbase, struggle to maintain corporate operations. Notably, the loan site Celsius went bankrupt while still holding consumer monies.
Coinbase is also in violation of Securities and Exchange Commission rules for enabling clients to trade in assets that should be registered as securities.
According to the complaint, Coinbase’s actions exposed the corporation to an increased risk of regulatory and governmental scrutiny.
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