A Delaware court has ruled that a shareholder lawsuit accusing Coinbase Global Inc. directors of insider trading during the company’s 2021 direct listing can temporarily proceed. The suit, filed in 2023, alleges that CEO Brian Armstrong and director Marc Andreessen sold over $2.9 billion in Coinbase stock to avoid potential losses exceeding $1 billion.
This decision comes despite a special litigation committee’s internal investigation that found the allegations unsubstantiated. The ruling allows the case to move forward in court, enabling discovery and further proceedings that could impact Coinbase’s leadership disclosures and corporate governance context surrounding the 2021 listing.
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