Coastal Financial Corporation (NASDAQ: CCB) Securities Fraud Class Action

The Coastal Financial Corporation securities fraud class action lawsuit was filed on behalf of those who purchased or otherwise acquired Coastal Financial Corporation (“Coastal”) (NASDAQ: CCB) common stock between October 28, 2024 and July 29, 2026, inclusive (the “Class Period”). Captioned Allegheny County Employees’ Retirement System v. Coastal Financial Corporation, No. 26-cv-03746 (W.D. Wash.), the Coastal class action lawsuit alleges that Coastal and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.

If you lost money as a result of your Coastal investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at [email protected]. 

COMPLAINT ALLEGATION SUMMARY:
Coastal is a registered bank holding company whose wholly owned subsidiaries include Coastal Community Bank (the “Bank”). Coastal conducts its business through three reportable segments: the Bank, CCBX, and treasury and administration. Through its CCBX segment, Coastal provides “banking as a service” (“BaaS”) to digital financial service providers, companies, and brands, enabling its partners to offer banking and other financial services to their customers.

The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) the credit quality of a substantial CCBX partner loan portfolio had materially deteriorated; (2) as such, Coastal was exposed to significant losses notwithstanding purported credit protection provided by the loan partner’s indemnification agreement; and (3) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

WHY DID COASTAL’S STOCK DROP?
On July 30, 2026, Coastal announced its second quarter 2026 financial results which included a surprise GAAP net loss of $42.1 million, primarily caused by a $68.8 million credit expense associated with a single CCBX partner relationship. On this news, the price Coastal’s common stock price fell 43.5%.

THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Coastal common stock during the Class Period to seek appointment as lead plaintiff in the Coastal class action lawsuit. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including being recognized in Chambers & Partners USA 2026 as a Band 1 Top Firm in Securities and Class Actions, Legal 500’s Tier 1 Rankings for Securities and M&A Litigation, The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.