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You have until September 20, 2021, to join the Coinbase class action lawsuit. Portnoy Law Firm filed the action, alleging that Coinbase’s registration statement and prospectus filed to go public were deceptive and caused considerable losses to $COIN investors.

In other words, the class-action lawsuit contends that Coinbase lied to investors regarding the company’s financial health and platform scalability. This, according to Portnoy, is clear because Coinbase failed to divulge its plans to issue $1.25 billion in bonds in May, as well as the platform’s ongoing failures. As a result, $COIN might not have had the same high valuation as when it launched on the Nasdaq Stock Exchange if Coinbase had stated that it was looking for a capital injection via a bond offering and had been honest about the performance of its platform.

Lesley F. Portnoy, Esq, the founding partner of Portnoy law:

“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;

(3) the positive statements about the Coinbase’s business, operations, and prospects lacked a reasonable basis and/or were materially misleading,”

The Initial Public Offering (IPO) of Coinbase

Coinbase ($COIN) went public on the Nasdaq stock exchange on April 14 at a price of around $380 per share, valuing the company at around $100.3 billion. However, the price of $COIN continued to fall, reaching a low of $220.61 in less than three months, implying that Coinbase had lost 42 percent of its worth.

This has resulted in huge losses for investors, which Portnoy Law argues could have been avoided if Coinbase had been open and honest about its financial situation and platform performance in its registration statement and prospectus.

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