Coinbase Brass Sued Over Costly Fallout Blamed on Nondisclosure

Coinbase Global Inc. directors and officers are responsible for harm to the company that stemmed from its failure to disclose regulatory, litigation, and customer asset risks, an investor alleges.

Many of the leaders made millions of dollars, and some made hundreds of millions, in stock sales shortly after the cryptocurrency exchange operator went public via a direct listing in April 2021, Kevin Meehan says. He filed his shareholder derivative complaint Tuesday in the US District Court for the District of New Jersey.

The complaint echoes a proposed securities class action pending in the same district.

The “truth gradually emerged” that ...