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Coastal Financial Corporation Investor Alert

In a recent advisory from Hagens Berman Sobol Shapiro LLP, critical information has emerged for investors in Coastal Financial Corporation (NASDAQ: CCB). The law firm, known for its commitment to protecting plaintiffs' rights, has issued a reminder about the impending deadline to file for lead plaintiff status in a significant federal securities class action lawsuit.

Class Action Overview

The plaintiff's action is focused on the period from October 28, 2024, to July 29, 2026, marked as the Class Period. Throughout this timeframe, investors who purchased shares of Coastal Financial are eligible to take part in the litigation if they suffered significant financial losses. To join as a lead plaintiff, interested investors must act before the December 1, 2026 deadline.

Investors are invited to provide their trading details or directly reach out to partner Reed Kathrein via email at [email protected] or by calling 844-916-0895 for further assistance.

Case Details

The lawsuit centers on allegations that Coastal Financial made misleading statements regarding the management of its Banking-as-a-Service (BaaS) segment, known as CCBX. Initially, the company claimed its operations were expanding responsibly and within a sound risk framework. However, the allegations suggest that the situation was quite the opposite.

Recent evidence indicates that, contrary to earlier assurances, the credit quality associated with a key partner's portfolio had significantly deteriorated. There's also concern regarding inadequate credit underwriting controls, which has left Coastal Financial vulnerable to substantial undisclosed credit losses.

The situation reached a tipping point on July 30, 2026, when Coastal Financial publicly announced a shocking quarterly GAAP net loss of $42.1 million. This loss stemmed primarily from a $68.8 million credit expense directly related to one partner within the CCBX framework. This revelation caused a dramatic drop in stock value—plummeting by 43.5%, or $30.75 per share, reducing Coastal Financial's market capitalization significantly in just one day.

Focus of Investigation

The law firm is delving into whether Coastal Financial engaged in deceptive practices or failed to disclose critical information regarding its credit risk management strategies effectively. Reed Kathrein reiterated the firm's commitment to thoroughly investigating these claims under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934.

Closing Remarks for Investors

If you are an investor who has suffered losses during the specified Class Period or possess any information relevant to the investigation, it is crucial to act promptly. Hagens Berman encourages direct communication to strengthen the case and possibly secure a more favorable outcome for affected parties.

Additionally, the firm reminds potential whistleblowers that there are opportunities to aid the investigation, along with the SEC's Whistleblower program, where individuals can earn rewards based on the recovery achieved.

Hagens Berman has made a name for itself by championing the rights of investors, whistleblowers, and consumers alike. It has successfully secured over $2.9 billion in settlements on behalf of its clients, aiming for corporate accountability in cases where negligence has caused harm. For further details regarding the Coastal Financial case or to stay updated, visit the Hagens Berman website at hbsslaw.com.

In response to the current situation, maintaining awareness and acting swiftly are essential for those affected to navigate these challenging circumstances in the securities landscape.