Coinbase Defendants Win Dismissal of Securities Class Action

On February 1, 2023, Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York granted a motion to dismiss a putative class action brought under the federal securities laws against defendants Coinbase Global, Inc., Coinbase, Inc. (collectively, Coinbase) and Coinbase Global’s CEO, Brian Armstrong, relating to the operation of Coinbase’s digital asset trading platforms. The court dismissed all claims brought under the Securities Act and Exchange Act against Coinbase and the control persons claims against Mr. Armstrong with prejudice. The court also declined to exercise supplemental jurisdiction over the remaining state law claims and dismissed them without prejudice.