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Coinbase Directors and CEO Facing Insider Trading Lawsuit | PYMNTS.com
- A judge allowed an insider trading lawsuit against Coinbase directors, including CEO Brian Armstrong, to proceed.
- The suit claims directors sold $2.9 billion of stock around Coinbase's 2021 direct listing using confidential information.
- The court did not dismiss the case despite an internal committee report the defendants cited for exoneration.
- The case centers on Coinbase’s direct listing, not a traditional IPO.
- Coinbase says the claims are meritless and will continue to fight them in court.
- The investor lawsuit was originally filed in 2023 by a Coinbase shareholder.
- Bloomberg News reported the internal investigation cleared the defendants of wrongdoing.
- Judge Kathaleen St. J. McCormick presided and noted conflicts within the internal committee.
- The case discusses Coinbase’s 2021 direct listing versus a traditional IPO.
- Armstrong has commented on tokenization's potential to improve settlement speed and access to markets.
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