Along with Coinbase, the action also named Brian Armstrong, CEO, Paul Grewal, CLO, and top executives along with some of its capital backers in the form of defendants. A shareholder of Coinbase has managed to file a class action. This class action is against Coinbase. It was filed because the crypto allegedly misled its investors before the public listing regarding the resilience and financial state of the company as a trading platform for cryptocurrencies.
Scott plus Scott, a law firm, filed this class action on Thursday in the District Court of Northern California. The action ended up naming Donald Ramsey, a shareholder of the cryptocurrency in the form of a plaintiff. Ramsey has successfully put forward his claims according to the Securities Act of the US. Ramsey has also presented all the evidence that he has drawn from the regulatory filings of Coinbase with the SEC. This is according to several reports by analysts, press releases by the company, and other information which was disclosed publicly regarding the exchange.
Despite naming the company, the action also ended up naming Brian Armstrong, CEO, Paul Grewal, CLO, and top executives along with many capital backers as defendants. Ramsey has made a lot of accusations and allegations regarding Coinbase along with its top executives. He has accused them of making misleading statements. The company has offered positive statements lacking a basis and had made them while issuing their public listing.
Also, Ramsey has talked about how suddenly and dramatically the shares of Coinbase fell once these alleged discrepancies came to the light of the public. He also cited several events which took place in May. At that time, the company announced their plans of raising a total of $1.25 bn through bond sales because they were short of funds.