Coinbase Global Inc. executives and board members are facing a new shareholder derivative lawsuit alleging they avoided over $1 billion in losses by selling shares using inside information during the company’s public listing. The legal action, filed in Delaware Chancery Court, claims that leadership, including CEO Brian Armstrong, possessed material non-public information about the company’s declining financial health while offloading stock to the public. The plaintiffs are seeking a clawback of these alleged insider profits and significant damages for breaches of fiduciary duty. This lawsuit adds to the ongoing legal and regulatory hurdles for the prominent cryptocurrency exchange as it continues to defend its business practices in the United States.
Source: Coinbase execs face new lawsuit seeking damages, insider profit clawbacks
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