Coinbase Finally Settles Dogecoin Sweepstakes Lawsuit
Coinbase and marketing firm Marden-Kane will pay $2,250,000 to settle a class action lawsuit regarding a "false and misleading" Dogecoin sweepstakes. The settlement, pending court approval, compensates U.S. users who participated in the sweepstakes and traded $100 of Dogecoin in June 2021. The promotion, which promised a $300,000 grand prize, was criticized for obscuring the fact that entry was free. Plaintiff David Suski claimed he would not have purchased Dogecoin if he had known this. Each settlement class member will receive compensation for transaction fees incurred during their initial $100 Dogecoin trades. Coinbase reportedly earned $1.3 million from these trades during the sweepstakes. Both Coinbase and Marden-Kane deny wrongdoing. The U.S. Supreme Court previously rejected Coinbase's attempt to compel arbitration in this case.
