Shareholders Sue Coinbase Over Data Breach Stock Plunge

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Coinbase investors are seeking damages in a new class-action lawsuit, accusing the crypto exchange of failing to timely disclose a data breach and an alleged UK regulatory violation, which triggered a stock price drop.

The lawsuit, filed by investor Brady Nessler in Pennsylvania federal court, claims Coinbase’s May 15 breach disclosure caused COIN shares to drop 7.2% to $244, eroding shareholder value. Despite a 9% rebound the next day, the suit argues that delayed transparency led to avoidable losses.

Coinbase revealed that hackers bribed employees to access customer data, leading to a $20 million extortion attempt and potential liabilities of up to $400 million.