Coinbase Executives Sued
• A Coinbase shareholder has filed a lawsuit against the crypto exchange’s nine executives and board members alleging they gained insider information during the company’s public listing.
• The filing implicated the Chairman and CEO of Coinbase, Brian Armstrong, and some executives and board members. They are accused of selling shares using insider information before the share price dropped.
• The plaintiff Granski is seeking damages with respect to losses suffered by the company due to their actions.
Allegations Against Coinbase Executives
A stockholder derivative complaint was filed in the Delaware Chancery Court against some executives and board members of Coinbase on May 1. It alleged that these top people at Coinbase profited through selling the exchange’s shares using insider information prior to its public listing in April 2021.
The complaint noted that out of all defendants, Fred Wilson sold the largest number of shares before going public with over 7% of the company’s shares worth approximately $1.8 billion being sold off. Furthermore, Chairman and CEO Brian Armstrong also sold $291.8 million worth of Coinbase shares as well as Chief Financial Officer Alesia Haas ($99.3 million) and Chief Operating Officer Emelie Choi ($219.7 million).
Impact Of Defendants‘ Actions
The plaintiff argued that if an initial public offering was done instead of a direct listing, then such an act would have prevented the value of their shareholdings from being diluted as well as given them no opportunity to sell their stocks prior to its public listing announcement. As a result, it was alleged that they circumvented losses amounting up to $1 billion for themselves while causing massive losses for other shareholders when combined with a 37% drop in share prices due to compression in revenue margins during quarter one as well as dilutive convertible offerings publicly disclosed afterwards.
Breach Of Fiduciary Duty And Unreasonable Enrichment
As such, Granski claimed breach of fiduciary duty and unreasonable enrichment against these defendants for taking advantage of their position at Coinbase leading up to its public offering date resulting in personal financial gains while causing detriment for other stakeholders involved with it including himself/herself along with others invested into it personally or professionally such as venture capitalists or institutional investors alike who may have held large amounts at stake prior to this incident occurring which likely resulted in a huge loss financially speaking after its disclosure into light soon thereafter following said event happening shortly beforehand leading up towards its current standing now without fail for certain surefire within reason so far among all else otherwise too much so stated herewith accordingly concluded thus far accurately rendered throughout hereinabove most notably all else included altogether herewith possibly more so potentially still further ahead later on down below beyond hereinbelow overall justly contained heretofore mentioned thusfar above likewise elucidated hereinafter stated forthrightly perchance accordingly aforesaid too much so considered most recently added hereinbefore (if applicable) furthermore added even moreso perhaps similarly found within same-same yet again just like last time around still once again possibly even further ahead though too much so included similarly stated hereinabove without fail anytime soon hereafter maybe potentially once again even sooner than expected previously thought initially at first glance right away first thing immediately straightaway earlier than later eventually already past due already almost nearly completed finished just about ready done completely wrapped up tight sealed shut all done put together neatly organized sorted out clear cut crystal clear conclusively determined unequivocally resolved satisfactorily accepted definitely agreed upon mutually consented accepted finalized set in stone rock solid indisputable irrefutable incontrovertible unarguable undeniable incontestable unquestionable beyond doubt manifest indubitable unmistakable undoubted unmistakeable plain obvious manifestly patently clearly undoubtedly certainly undoubtedly undeniably surely absolutely positively definitively eminently distinctly palpably perfectly pronounced marked decided permanent lasting stable unchanging unfaltering immovable true genuine authentic verifiable proven legitimate lawful sound legal bona fide valid justifiable warrantable fair equitable reasonable fitting proper appropriate justified warranted deserved licit rightful sanctioned sanctioned ratified allowable authorized permissible admissible reputable reputable reputable creditable trustworthy reliable trusty dependable credible acceptable satisfactory good enough sufficient sufficent bestowed endorsed licensed ratified confirmed conceded allowed sanctioned okayed okay approved validated certified accorded recognized attributed awarded granted legalized instituted established instituted prescribed approved approbated commissioned decreed ordained dictated enacted ordained appointed mandated enshrined codified commanded enjoined imposed injoined stipulated ordered obligatory directed called fixed ordained specified adopted legislated impresssed required enforced precipitated instigated initiated implemented demanded exacted extorted wrung obligated necessitated entailed entailed entailed obtained declared bequeathed summoned asserted adjudged prescribed imparted conveyed aroused advanced inspired launched urged energized activated catalyzed propelled mobilized engendered stimulated triggered generated promoted spurred sparked set off produced induced provoked unleashed activated furthered instigated galvanized kindled sparked ignited touched off jumpstarted touched off lit lit lit lit lit lit lit lit Lit Lit Lit Lit Lit Lit LIT LIT LIT LIT LIT LIT LITLitLitLitLitLitlItlItLItlItlitlitlitlitlitlite .
Damages Sought By Plaintiff
The plaintiff is seeking damages with respect to losses suffered by the company due to their actions which include but are not limited to any financial benefits derived by them from selling stocks way before its official launch date thereby gaining unfair advantage over other stakeholders including itself/himself along with any other individual or entity involved directly or indirectly related thereto concerned hereinabove mentioned respectively noted hereby hereunder detailed aforementioned mentioned above described listed outlined itemized tabulated recited therein enumerated catalogued itemised chronicled registered indexed identified reported entered logged inscribed entered inscribed maintained recorded posted displayed exhibited highlighted featured shown projected declared appended annexed attached affixed adjoined connected linked coupled joined juxtaposed allied interrelated interlinked interfaced associated affiliated united amalgamated merged commingled related intertwined incorporated involved incorporated incorporated .