Latest Portnoy Law News

You have until September 20, 2021, to join the class action lawsuit against Coinbase. The lawsuit is being filed by Portnoy Law Firm and claims that Coinbase’s (NASDAQ: COIN) registration statement and the prospectus it filed to go public were misleading and resulted in significant damages to $COIN investors. “It is alleged in this complaint that the registration statement and prospectus that was used to effectuate Coinbase’s Offering were misleading and false and omitted to state that, at the time of the Offering: (1) Coinbase required a sizeable cash injection; (2) Coinbase was susceptible to service-level disruptions, which were increasingly likely to occur, as Coinbase scaled its services to a larger user base; and (3) the positive statements about the Coinbase’s business, operations, and prospects lacked a reasonable basis and/or were materially misleading,” according to Lesley F. Portnoy, Esq the founding partner of Portnoy law. In other words, the class action lawsuit claims that Coinbase was not truthful about the financial health of the company and the scalability of its platform. Portnoy believes this is evident because Coinbase did not mention its plans to sell $1.25 billion worth of bonds in May, and the continual outages the platform experienced. If Coinbase had mentioned that it was looking for a cash injection via a bond sale and was honest about the performance of its platform, then $COIN may have not had as high of a valuation as it did when it debuted on the Nasdaq Stock Exchange. “Coinbase undermined its representations in the Offering Materials released on May 17, 2021, that Coinbase’s existing cash and cash equivalents were sufficient, by announcing plans to raise capital in the form of a convertible bond sale. Coinbase revealed, on May 19, 2021, technical problems experienced by users on its platform, including “delays…due to network congestion” effecting “those who want to get their money out,” said Portnoy. The Coinbase IPO Coinbase ($COIN) went public on the Nasdaq stock exchange on April 14th at roughly $380 per share; at that price level, Coinbase had a valuation of about $100.3 billion. However, the price of $COIN continually dropped, reaching a low of $220.61–this means that Coinbase shed 42% of its value in a little less than 3 months. This has caused investors to experience significant damages, damages that Portnoy Law believes could have been prevented if Coinbase was honest about its financial status and platform performance in its registration statement and prospectus. As of press time, $COIN is trading at $233.79 and has a market cap of $49.4 billion.