A securities class action has been filed against Coastal Financial Corporation (CCB) on behalf of all investors who purchased or otherwise acquired Coastal common stock between October 28, 2024 through July 29, 2026. This case has been filed in the USDC – WDWA.
On July 30, 2026, Coastal announced second quarter 2026 financial results, including a net loss of $42.1 million, or $(2.76) per diluted common share for the quarter, compared to net income of $12.0 million, or $0.78 per diluted common share in the prior quarter. The Company stated the “net loss is primarily attributable to a $68.8 million credit expense related to a single, isolated CCBX partner relationship.”
On this news, shares of the Coastal fell as much as $30.75 or 43.52%, to close at $39.91 on July 30, 2026, thereby injuring investors.
The complaint alleges that dring the Class Period, Defendants made materially false and misleading statements concerning the growth and credit quality of Coastal’s CCBX business, the adequacy of the Company’s risk management and credit monitoring practices, and the credit protections afforded by Coastal’s CCBX partner indemnification agreements. While touting the continued growth of CCBX and representing that such growth was being pursued in a disciplined manner with a focus on risk management and credit quality, Defendants failed to disclose that the credit quality of a substantial CCBX partner loan portfolio, comprising approximately $500 million in loans and nearly 23% of all CCBX loans, had materially deteriorated, exposing Coastal to significant losses notwithstanding the purported credit protection provided by the partner’s indemnification agreement.