A US judge has allowed Coinbase shareholders to proceed with a narrowed lawsuit, accusing the company of concealing key business risks, including potential SEC action.

Coinbase, the largest US crypto exchange, had sought full dismissal of the case, but Judge Brian Martinotti in New Jersey rejected that request.

Shareholders allege Coinbase misled them about the likelihood of SEC legal action and the risk of asset loss in bankruptcy.

The judge allowed claims tied to specific defendants but dismissed those based only on general group statements.

The class action, led by Swedish fund Sjunde AP-Fonden, covers investors from April 2021 to June 2023, during which Coinbase shares dropped sharply after risk disclosures and the SEC lawsuit.

🔗 Source: Reuters