- A federal judge dismissed several claims against Coinbase but allowed part of a shareholder lawsuit to proceed.
- Some claims connected to statements by Coinbase executives and directors can move forward in court.
- The lawsuit accused Coinbase of misleading investors about possible action from the Securities and Exchange Commission (SEC).
- Coinbase‘s stock price increased by 3% after the court decision as broader cryptocurrency market momentum continued.
- The SEC previously dropped its lawsuit against Coinbase in February 2025, barring any refiling of identical charges.
A federal judge in Newark, New Jersey declined a request from Coinbase for a full dismissal of a shareholder lawsuit, allowing some allegations against the company to continue. This ruling—given by U.S. District Judge Brian Martinotti—dismissed many claims but stated that specific accusations tied to statements made by Coinbase executives and directors could remain under consideration.
Shares of Coinbase rose about 3% in midday trading following the news, with positive sentiment aligning with broader gains across the cryptocurrency sector. The price of Bitcoin (BTC) reached above $117,000, gaining 3.8% in the 24-hour period measured at press time.
The shareholder lawsuit argued that Coinbase misled investors into believing it was unlikely to face SEC accusations of operating as an unregistered securities exchange. The complaint also said the company downplayed risks around customers potentially losing assets if it entered bankruptcy.
Judge Martinotti rejected claims based on a practice known as “group pleading,” which treats all executive statements as collectively issued. He wrote, “Where plaintiffs have appropriately provided defendant-by-defendant particularity, the claims must remain.” Accordingly, only well-specified claims against individual executives or directors will go forward.
This development follows the SEC’s February 2025 decision to dismiss its own 2023 lawsuit against Coinbase for alleged operation as an unregistered securities exchange. The Reuters report noted the SEC dismissal was “with prejudice,” meaning the agency cannot refile the same charges, and no penalties were imposed on the company.
Over the past year, Coinbase stock has risen by more than 30% and nearly doubled in the last 12 months.
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