When Coinbase revealed a data breach on May 15, its stock took an immediate hit—dropping 7.2% in a single day. Now, angry investors are suing.
The proposed class-action lawsuit, filed by shareholder Brady Nessler, accuses Coinbase of failing to disclose both the breach and an alleged violation of its UK regulatory agreement, leading to a “precipitous decline” in stock value. Though shares rebounded 9% the next day, the damage was done.
The breach stemmed from hackers bribing customer support agents to access sensitive user data. Coinbase, which faced a $20 million extortion demand, now estimates total damages could reach $400 million.
