Coinbase sued in class action over stock price drop tied to data breach reveal, alleging disclosure 'omissions'

Crypto exchange Coinbase has come under legal fire in a class action lawsuit filed by its stock holders following a recent decline in the company's stock price. The suit alleges the crypto exchange failed to promptly disclose a user data breach earlier this month, as well as a violation of an agreement with a UK regulator.

In a class action suit filed Thursday with the U.S. District Court for the Eastern District of Pennsylvania, investor Brady Nessler claimed that Coinbase shareholders "suffered significant losses and damages." 

The lawsuit outlined a long list of the company's alleged "omissions" over the past few years. For example, it alleged that Coinbase failed to properly disclose that CB Payments, its UK subsidiary, had breached a 2020 agreement with the UK's Financial Conduct Authority.

Also, Coinbase disclosed on May 15, 2025, that it had suffered a data breach in December, in which cybercriminals successfully bribed employees to hand over customers' personal data. Its stock price dropped on the news, falling 7.2% to close at $244 on that day, according to the suit.

Coinbase estimated that the data breach could result in remediation and customer reimbursement costs ranging between $180 million and $400 million.

"As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s common shares, Plaintiff and other Class members have suffered significant losses and damages," the lawsuit said.

Coinbase's stock has since risen back to $263.16 at closing on May 23, according to Google Finance.

The Block has reached out to Coinbase for comment.

Coinbase CEO Brian Armstrong and CFO Alesia Haas are also named as defendants in the case.

The class action lawsuit seeks to recover damages on behalf of investors who acquired Coinbase stock between April 14, 2021, and May 14, 2025.