The complaint, filed by the law firm Bronstein, Gewirtz & Grossman, LLC, asserts that Coastal Financial failed to disclose significant issues within a $500 million partner loan portfolio. According to the filing, these loans accounted for nearly 23% of the company's total CCBX portfolio. The litigation claims that the company’s internal credit protection, specifically a partner indemnification agreement, was insufficient to cover the losses resulting from the underlying credit decline, rendering previous financial disclosures materially inaccurate.
Coastal Financial Faces Class Action Over Alleged Loan Portfolio Risks
A federal securities class action has been filed against Coastal Financial Corporation, alleging that the company misled investors regarding the credit quality of its CCBX partner loan portfolio. The lawsuit covers those who purchased Coastal securities between October 28, 2024, and July 29, 2026, amid claims of concealed financial deterioration.
Investors who suffered losses during the specified period have until December 1, 2026, to petition the court to serve as lead plaintiff. While the firm operates on a contingency fee basis, meaning legal costs are only recovered if the lawsuit succeeds, those wishing to participate do not need to act as lead plaintiff to be eligible for a potential recovery.
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