As per the latest reports, a class action has been filed by one of the shareholders at Coinbase. The sources reveal that the class action filed by the shareholder is for securities. The securities class action has been reportedly filed by the shareholder against the exchange, Coinbase.
In the class action, the plaintiff has claimed that they were misled by the exchange through misleading investments. According to the plaintiff, the misleading claims/statements were made by the exchange prior to its public listing. The plaintiff alleged that the exchange did this to bring more investors on board to fully benefit from them at the time of listing.
The plaintiff has revealed that the exchange officials had made a misleading statement around the market presence of the exchange. They had misled the investors about the resilience and the financial state of the cryptocurrency exchange.
The sources reveal that the class action has been filed by the claimant through the Scott + Scott law firm. The particular law firm had launched the complaint against the responsible entities on Thursday, July 22, 2021. The case was reportedly filed at the California Northern District Court.
The name of the plaintiff that has filed the case against Coinbase and the executives is Donald Ramsey who is also a shareholder at Coinbase. The media sources have revealed that the plaintiff has filed the case against Coinbase as an individual person. However, in the class action filing, he has claimed that he is doing it on behalf of other investors/shareholders as well.
Donald Ramsey has demanded justice from the District Court under the US Securities Act for the claims he has made. In his case, he has also provided evidence from the regulatory filings from Coinbase, which were filed by the exchange at the US SEC.
He has also drawn evidence and information from the exchanges publicly disclosed information, company press releases, and other details that the exchange had shared/communicated about itself.
In the class action filed by the plaintiff’s law firm, several names other than Coinbase have been added. These names would also be required to appear for the hearings as defendants. The list of defendants includes Brian Armstrong, the CEO at Coinbase, Paul Grewal, the chief legal officer, and many more executives who would end up defending themselves.
Apart from the above entities, several executives from the venture capital firms have been accused by Ramsey of supporting misleading statements by Coinbase.
The cryptocurrency exchange and its executives are being accused by Ramsey of issuing statements that were misleading for investors. This was done only to mislead the investors about the promising nature of the company and lure them into joining the platform.