A class action lawsuit was filed against Coinbase, alleging securities fraud. The lawsuit was filed in the Californian District Court by the lawfirm Scott + Scott. A shareholder of Coinbase called Donald Ramsey is named as plaintiff. Ramsey is reported to be encouraging other shareholders to join the legal battle against the crypto exchange.
Coinbase went public on Nasdaq with a listing of 1,144,850,169 shares of A common class stock. It was subsequently overhyped by the public and attracted a massive interest from retail investors.
According to the lawsuit:
“According to the complaint, the registration statement and prospectus used to effectuate the company’s offering were false and misleading…At the time of the Offering: (1) the Company required a sizeable cash injection; (2) the Company’s platform was susceptible to service-level disruptions, which were increasingly likely to occur as the Company scaled its services to a larger user base,”
These allegations are connected to the crypto exchange raising some 1.25 billion US dollars in May this year. The bond preparation operations as well as a number of technical issues led to a crash of price in stocks. Coinbase’s shares crashed by about 10% and at the moment are valued about 225 US dollars a piece.
The lawsuit also names CEO Brian Armstrong and Chief Legal Officer Pau Grewal as culprits and also includes various venture capitals that are behind Coinbase.
Source
So that's why Coinbase created so much hype around its listing. I was wondering about that, back then.
Coinbase went public on Nasdaq with a listing of 1,144,850,169 shares of A common class stock. It was subsequently overhyped by the public and attracted a massive interest from retail investors.
According to the lawsuit:
“According to the complaint, the registration statement and prospectus used to effectuate the company’s offering were false and misleading…At the time of the Offering: (1) the Company required a sizeable cash injection; (2) the Company’s platform was susceptible to service-level disruptions, which were increasingly likely to occur as the Company scaled its services to a larger user base,”
These allegations are connected to the crypto exchange raising some 1.25 billion US dollars in May this year. The bond preparation operations as well as a number of technical issues led to a crash of price in stocks. Coinbase’s shares crashed by about 10% and at the moment are valued about 225 US dollars a piece.
The lawsuit also names CEO Brian Armstrong and Chief Legal Officer Pau Grewal as culprits and also includes various venture capitals that are behind Coinbase.
Source
So that's why Coinbase created so much hype around its listing. I was wondering about that, back then.
