Coinbase Execs Sued for Dumping $3 Billion Worth of COIN Shares
A Coinbase stockholder sued the company’s executives in Delaware on Monday, May 1, for dumping the company’s stock. According to the allegations, insiders—including Chairman and Chief Executive Officer Brian Armstrong, Board Member Marc Andreessen—sold around $3 billion in shares. This was done right before the management revealed “material, negative information that destroyed market optimism from the company’s first quarterly earnings release forward.” On April 14, 2021, Coinbase became a Nasdaq-listed company. At that time, COIN was trading over $380 per share in the beginning. It went on to claim a high of $429 per share on its volatile first day. According to the filing, “ Defendants took full advantage of the absence of any lock-up in the Direct Listing, rapidly selling over $2.9 billion of Coinbase stock on the first day and in the days that followed, from April 14, 2021, through April 22, 2021. “ In fact, the plaintiff Adam Grabski claimed that he has held Coinbas...