A lawsuit of A-class action has been instituted against Coinbase and its officials for presenting false and bogus documents for the purposes of getting the firm listed at NASDAQ. The company took the advantage of misstatement while jeopardizing the interests of the general public, claimed the suit.
Legal proceedings, in the form of an “A-class lawsuit”, have been initiated by a person named Donald Ramsey against Coinbase and its officials. The suit has been filed through the legal team of lawyers of Scott+Scott Attorneys. While Coinbase has been impleaded as the main defendant, yet the firm’s key officials to have been named as the defendants. For instance, Brian Armstrong, who is the CEO of Coinbase, has been impleaded as defendant No.2 in the present proceedings.
In addition, the company’s investors as well as its business partners too have been arrayed amongst the defendants. These investors include the names of Fred Ehrsam, Marc Andreessen, Tiger Global Management, Viserion Investment, AH Capital, and Union Square Ventures.
Coinbase is presently known to be the world’s leading digital asset trading company. The company is a US-registered company having its branch offices in various parts of the world. At present, the company has a total of 56 million customers throughout the world. It also has global business partners exceeding a total of 134,000 which represent at least a hundred different countries.
Since its inception, the company has been widely popular amongst global crypto traders. Because of its size and weight, the company is also best known for having the largest crypto trade volume on daily basis. However, the company wanted to become a public listed company by becoming part of the NASDAQ list. On 14th April 2021, the company was duly incorporated into the registered companies’ list of NASDAQ. The company then made its Class A shares available for purchase by the general public. There were a total of 114,850,769 shares from the Class A category which started to trade hands at US$ 381/share.
It has been alleged in the lawsuit by the plaintiff that the documents submitted for NASDAQ registration by Coinbase were false and bogus. The suit further raises an allegation that when Coinbase had presented the shares for sale, they were lacking cash support injected by Coinbase. The suit then alleged that the company then took benefit of the statements relating to the company’s operations and business which were showed in positive.
The suit has been admitted by the US Court for normal hearing and in the meantime, notices have been served to all concerned parties. When the media personnel tried to contact Coinbase and its CEO, both refused to give any comments. Coinbase’s CEO said that the matter is pending before a Court and he cannot make any comment on ongoing proceedings.