{"id":28535,"date":"2025-05-26T02:46:42","date_gmt":"2025-05-26T02:46:42","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=28535"},"modified":"2025-05-26T02:46:42","modified_gmt":"2025-05-26T02:46:42","slug":"coinbase-faces-another-data-breach-lawsuit-claiming-stock-drop-damages","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=28535","title":{"rendered":"Coinbase faces another data breach lawsuit claiming stock drop damages"},"content":{"rendered":"
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\"Coinbase<\/p>\n

Coinbase and two executives have been hit with another proposed class-action lawsuit over the crypto exchange\u2019s stock price drop after disclosing a user data breach earlier this month and for allegedly failing to disclose a violation of an agreement with a UK regulator.<\/p>\n

Coinbase investor Brady Nessler said<\/a> in a May 22 lawsuit filed in a Pennsylvania federal court that the data breach and the alleged broken agreement with the UK\u2019s Financial Conduct Authority resulted in a \u201cprecipitous decline in the market value of the Company\u2019s common shares,\u201d causing stockholders to suffer \u201csignificant losses and damages.\u201d<\/p>\n

Coinbase said on May 15 that its damages bill could run up to $400 million after it was hit with a $20 million extortion attempt four days earlier<\/a>, with several of its customer support agents bribed to access internal systems and steal a limited amount of user account data.<\/p>\n

Nessler claimed Coinbase (COIN) shares dropped by 7.2% to close at $244 on May 15 as a result of the disclosure. However, the stock did stage a comeback, spiking 9% and hitting $266 by the closing bell on May 16, according<\/a> to Google Finance.\u00a0<\/p>\n

Coinbase stock closed down over 3% on May 23 at $263, falling another $1.62 after the bell. COIN is up nearly 6% so far this year.<\/p>\n

\"Coinbase
Coinbase is down from the May 23 trading session. Source: <\/em>Google Finance<\/em><\/a><\/figcaption><\/figure>\n

Nessler\u2019s complaint is seemingly the first to argue damages caused by Coinbase\u2019s stock drop following its breach disclosure in a series of recent class-action lawsuits over the incident.<\/p>\n

The crypto exchange was hit with at least six lawsuits<\/a> in the days after disclosing the data breach, all accusing it of mishandling the incident and failing to protect their data.\u00a0<\/p>\n

UK agreement breach hurt stock, suit says<\/h2>\n

The FCA fined Coinbase\u2019s UK arm $4.5 million in July 2024 for breaching a 2020 voluntary agreement<\/a> preventing the exchange from onboarding customers considered high risk by the regulator.<\/p>\n

The FCA said Coinbase onboarded 13,416 customers that the regulator considered high-risk and offered them crypto services<\/a>.<\/p>\n

Related: <\/strong><\/em>Coinbase presses to axe rule banning SEC staff from holding crypto<\/strong><\/em><\/a><\/p>\n

Nessler said in the suit that the fine saw Coinbase\u2019s stock fall by over 5%, closing at $231.52 on July 25, 2024.<\/p>\n