Coinbase Faces Investor Lawsuit Over Alleged Damages From Data Breach
Coinbase faces a lawsuit alleging violations of securities laws and misleading statements to shareholders, filed by investor Brady Nessler in the U.S. District Court for the Eastern District of Pennsylvania. The complaint claims Nessler incurred significant financial losses due to Coinbase's failure to disclose a data breach affecting customer information, which began in December 2024 and was revealed on May 15, leading to a 7% drop in stock price. The lawsuit also cites nondisclosure of dealings with U.K. regulators prior to Coinbase's public listing in the U.S. Coinbase's stock has since recovered, trading at $263, up 7% from the initial drop. The company reported that less than 1% of user data was compromised and received a $20 million ransom demand related to the breach. Nessler's legal team has not specified the damages sought and is requesting a jury trial.
