Coinbase Global, Inc.
(NASDAQ GS: COIN)
Rigrodsky Law, P.A. is investigating potential claims against the officers and directors of Coinbase Global, Inc. ("Coinbase") on behalf of stockholders. A class action complaint has been against Coinbase. On May 17, 2021, Coinbase undermined its representations in its offering materials that Coinbase's existing cash and cash equivalents were sufficient by announcing plans to raise capital via a convertible bond sale. On May 19, 2021, Coinbase revealed technical problems experienced by users on its platform, including “delays…due to network congestion” effecting “those who want to get their money out." On this news, the price of Coinbase shares fell $23.44 per share, nearly 10% over two consecutive trading sessions, to close at $224.80 per share on May 19, 2021, thereby injuring investors. The complaint alleges that the registration statement and prospectus used to effectuate Coinbase’s offering were false and misleading and omitted to state that, at the time of the offering: (i) Coinbase required a sizeable cash injection; (ii) Coinbase’s platform was susceptible to service-level disruptions, which were increasingly likely to occur as Coinbase scaled its services to a larger user base; and (iii) accordingly, the positive statements about Coinbase's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.