Coinbase Sued for Stock Drop Due to Data Breach
Coinbase, a major cryptocurrency exchange, faces a class action lawsuit from its stockholders following a drop in its stock price. The suit, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges Coinbase did not promptly disclose a data breach or a breach of agreement with the UK Financial Conduct Authority. This disclosure lapse supposedly led to significant financial losses for shareholders. Investor Brady Nessler, representing the class, claims the breach involved employee compromise, costing the firm up to $400 million in damages and customer reimbursement. Despite a rebound in stock price, the case seeks compensation for affected investors.
FAQ
❓ What initiated the lawsuit against Coinbase?
The lawsuit was initiated due to Coinbase's failure to disclose a data breach and regulatory agreement violation, leading to stock price decline.
❓ How much could the data breach cost Coinbase?
The breach could cost Coinbase between $180 million and $400 million for remediation and customer reimbursements.
❓ What was the impact of the data breach on Coinbase’s stock?
Following the disclosure, Coinbase's stock price dropped 7.2% but later rebounded slightly.