The securities action asserts that Coastal Financial's public assurances of "strong regulatory stewardship" and disciplined CCBX credit oversight violated Section 10(b) and Rule 10b-5. Those assurances preceded a $68.8 million single-partner charge that sent CCB shares down 43.5%.
NEW YORK, Oct. 14, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Coastal Financial Corporation (NASDAQ: CCB) that a securities class action asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 has been filed in the United States District Court for the Western District of Washington (Case No. 2:26-cv-03746). The case covers purchasers of Coastal common stock between October 28, 2024 and July 29, 2026. Submit your information now or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
IMPORTANT DATE: December 1, 2026. That is the deadline to seek lead plaintiff appointment in a case where Coastal reported a $42.1 million GAAP net loss for the second quarter of 2026. CCB shares fell $30.75, or 43.5%, to close at $39.91 on July 30, 2026, erasing approximately $470 million in market capitalization in a single session.
Alleged Exchange Act Violations Behind the CCB Losses
The complaint brings claims under Section 10(b) and Rule 10b-5 against Coastal and three current or former senior officers. It also charges those officers as control persons under Section 20(a). As alleged, the Company presented its banking-as-a-service expansion as disciplined and compliance-focused while omitting that a large partner loan portfolio had materially deteriorated.
The lawsuit maintains these omissions left Coastal exposed to losses that its partner indemnification arrangements did not prevent.
Regulatory Stewardship Claims Versus the Alleged Record
Plaintiffs contend that the following compliance and oversight assurances did not reflect conditions inside the CCBX portfolio:
- September 22, 2025: Coastal said a new CFO appointment reaffirmed "its dedication to operating excellence, strong regulatory stewardship," and the continued scaling of its fintech division.
- October 2, 2025: The Company disclosed that its Chief Risk Officer had resigned effective September 29, 2025. The complaint cites this departure as supporting an inference of scienter.
- October 29, 2025: The Company said it remained "confident in our ability to manage expenses and maintain credit quality, even in a changing economic and interest rate environment."
- April 29, 2026: Management tied CCBX growth to operating in a "safe and sound manner" as expectations for bank-fintech partnerships evolved.
- July 22, 2026: Coastal announced that its CFO would step down effective August 15, 2026. That announcement came eight days before the Company disclosed the $68.8 million single-partner credit expense.
Why Plaintiffs Say the Safe Harbor Offers No Cover
The action claims that many of the challenged statements were never identified as forward-looking. Where any were, the complaint asserts that "there were no meaningful cautionary statements identifying important factors that could cause actual results to differ materially." In practical terms, plaintiffs argue that Coastal's assurances about credit quality and partner protections cannot be excused as mere projections.
"Coastal told investors it was dedicated to strong regulatory stewardship and to operating in a safe and sound manner, and shareholders were entitled to rely on those words. The complaint alleges that, during the same period, a partner portfolio of approximately $500 million was deteriorating without disclosure. Whether those assurances were accurate when made is a central question in this case." -- Joseph E. Levi, Esq.
Find out if you might qualify to recover losses or call (212) 363-7500.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the CCB Lawsuit
Q: What is the CCB class action lawsuit about? A: A securities class action has been filed against Coastal Financial Corporation (NASDAQ: CCB) alleging materially false and misleading statements between October 28, 2024 and July 29, 2026. Shares fell approximately 43.5% after the Company disclosed a $68.8 million credit expense tied to a single CCBX partner relationship and a $42.1 million GAAP net loss for the second quarter of 2026. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.
Q: What court was the CCB class action filed in? A: The case was filed in the United States District Court for the Western District of Washington, governed by the Private Securities Litigation Reform Act of 1995.
Q: Who are the defendants named in the CCB lawsuit? A: The complaint names Coastal Financial Corporation and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.
Q: What do CCB investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.
Q: What happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.
Q: What if I already sold my CCB shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.
Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
jlevi@levikorsinsky.com\
Tel: (212) 363-7500\
Fax: (212) 363-7171
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