Samuel Law Firm Files Class Action Against Coinbase

NEW YORK, Aug. 11, 2022 /PRNewswire/ -- New York resident and Coinbase shareholder A. Manny Alicandro has filed a class action in federal court in Manhattan alleging that Coinbase, Global Inc. and several senior executives and insiders misled prospective investors about their true intentions to sell shares in Coinbase's Direct Listing public offering on April 14, 2021.

While the prospectus stated that there was no assurance that any shareholders would sell any shares in the offering, nine of the defendants took actions to rapidly and significantly increase the amount of readily saleable Coinbase Class A common shares they held in the days leading up to the offering and then sold more than seven million shares of Coinbase stock on April 14, 2021, the first day of public trading, receiving more than $2.7 billion in proceeds. More than 1.3 million of those shares were sold immediately at the market opening that day at a price of $381 per share.

In a direct listing public offering, unlike an IPO, the issuing company's insiders sell their shares directly to the public. Mr. Alicandro, who purchased Coinbase stock on April 14, 2021, alleges in the complaint that this distinction means that information disclosed to prospective investors about the intentions of company insiders to sell stock is important to prospective investors in deciding whether to buy stock in the offering and that Coinbase and the insiders who sold should have disclosed their true intentions to sell millions of shares collectively.

Mr. Alicandro is represented by Michael Samuel and Andrew D. Beresin of the Samuel Law Firm in New York.

Media Contact:
Michael Samuel
michael@thesamuellawfirm.com

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SOURCE The Samuel Law Firm