#United States #New York #Levi & Korsinsky #CCB #Coastal Financial

Coastal Financial Corporation Shareholder Alert

Levi & Korsinsky, LLP has announced an urgent call to action for investors who have experienced financial losses with Coastal Financial Corporation (NASDAQ: CCB). The firm is highlighting the importance for these investors to connect with them concerning a class action lawsuit that may lead to recovery of losses incurred during a defined period.

Background of the Case

The lawsuit centers around significant financial discrepancies within Coastal Financial's operations, particularly regarding its CCBX banking-as-a-service segment. Investors who acquired shares from October 28, 2024, through July 29, 2026, may have the opportunity to seek recompense for their investments. On July 30, 2026, Coastal Financial's stock dropped dramatically by 43.5%, equating to a loss of approximately $470 million in market capitalization after reporting an astounding net loss of $42.1 million. This financial downturn was primarily linked to a $68.8 million credit expense related to a singular CCBX partner.

Timeline of Events

The timeline leading up to the disclosures reflects a troubling narrative of internal executive turnover and alleged misstatements.

• - On August 13, 2025, Coastal appointed several new executives, including a Chief Credit Officer.
• - The instability continued with the announcement of a new Chief Financial Officer on September 22, 2025, followed by the Chief Risk Officer’s resignation effective on September 29, 2025.
• - Despite these significant changes, the company assured its stakeholders of consistent credit quality and management of financial risks moving forward.

The situation escalated on July 30, 2026, when the company revealed the unexpected $68.8 million credit expense, hoping to maintain investor confidence while simultaneously disclosing that issues within a crucial credit partner were not properly communicated.

Legal Implications

Levi & Korsinsky highlights the legal ramifications of these actions, emphasizing that timely and accurate disclosures are essential for maintaining fair and efficient market practices. The firm believes that Coastal made misleading allegations regarding the credit quality and robustness of its CCBX business and generally failed in its risk management framework, raising significant concerns about investor transparency.

How to Get Involved

Investors who have been adversely affected are encouraged to connect with Joseph E. Levi, Esq., by email at [email protected] or by phone at (212) 363-7500. The window to apply as a lead plaintiff in this class action suit closes on December 1, 2026.

Even if investors have divested their shares, those who held shares during the specified period may still qualify for potential recovery. There is no requirement for shareholders to appear in court, as most claimants do not need to provide testimonies unless the matter proceeds to utter litigation or settlement.

FAQs for Investors

• - What are the alleged misstatements? The complaint asserts Coastal Financial misled investors regarding the viability and credit competency of its CCBX segment.
• - What if I've already sold my shares? Yes, eligibility is based on the acquisition period, not the current ownership of the shares.
• - How long will the lawsuit take? Securities class actions generally range from two to four years from filing to resolution, depending on various factors within the court system.

Conclusion

This class action lawsuit presents an opportunity for investors affected by Coastal Financial’s management practices and their misleading claims about financial stability. Levi & Korsinsky stand ready to assist investors in navigating the complexities of this situation to seek the recovery they deserve.