US judge rules Coinbase must face class action lawsuit from shareholders over regulatory risks

BlockBeats news, September 10, according to CoinDesk, last week, a U.S. judge ruled that Coinbase must face a class action lawsuit filed by shareholders for regulatory risks. The lawsuit was filed by Coinbase shareholders, accusing the exchange of misleading them about the possibility of being sued by the U.S. Securities and Exchange Commission (SEC).

Several Coinbase shareholders sued the exchange in 2022, accusing the exchange of "making materially false and misleading statements" about its operations and the regulatory risks it faces. New Jersey District Court Judge Brian Martinotti ruled on Thursday that although the plaintiffs made a persuasive case for Coinbase's behavior in regulatory actions (in fact, the SEC did sue Coinbase), they did not make a persuasive case for most of the allegations.

The court document wrote: "The court believes that the plaintiff has fully accused the defendant of misleadingly describing the possibility that the SEC will not take enforcement action by repeatedly emphasizing that the crypto assets they listed are not securities."