What Should Coastal Financial Corporation Investors Know After 43.52% Stock Drop? The Law Offices of Frank R. Cruz Outlines Securities Fraud Class Action Lead Plaintiff Deadline

PR Newswire

LOS ANGELES, Oct. 26, 2026

Lawsuit alleges Coastal Financial Corporation made misleading statements to investors from October 28, 2024 to July 29, 2026; lead plaintiff motions are due December 1, 2026

LOS ANGELES, Oct. 26, 2026 /PRNewswire/ -- The Law Offices of Frank R. Cruz today announced a class action lawsuit against Coastal Financial Corporation ("Coastal Financial" or the "Company") (NASDAQ: CCB) on behalf of investors who acquired the Company's securities from October 28, 2024 to July 29, 2026. Filed on October 2, 2026, the case is Allegheny County Employees' Retirement System v. Coastal Financial Corporation et al., USDC Western District of Washington at Seattle, Case No. 2:26-cv-03746.

If you lost money on Coastal Financial Corporation securities, submit your Coastal Financial Corporation loss information by December 1, 2026 to learn about participating in the lawsuit.

Coastal Financial Corporation class action timeline

What happened?

On July 30, 2026, Coastal Financial reported second quarter 2026 financial results, including a net loss of $42.1 million, or $(2.76) per diluted common share, 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 was primarily attributable to a $68.8 million credit expense related to a single, isolated CCBX (Banking-as-a-Service) partner relationship.

On this news, shares of Coastal fell $30.75 or 43.52%, to close at $39.91 on July 30, 2026, thereby injuring investors.

What is the Coastal Financial Corporation lawsuit about?

The Coastal Financial Corporation securities lawsuit alleges that, between October 28, 2024 and July 29, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Coastal Financial Corporation's business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) 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; (2) as a result of that deterioration, Coastal faced significant exposure to credit losses notwithstanding Defendants' repeated representations concerning the credit protections provided by its CCBX partner agreements; (3) Coastal's risk management and credit monitoring practices were inadequate to identify, adequately account for, and mitigate the deterioration of the CCBX partner loan portfolio and the resulting risks to Coastal; and (4) as a result, defendants' positive statements about Coastal Financial Corporation's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

"According to the complaint filed against Coastal Financial Corporation, the Company, among other things, did not 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. The December 1, 2026 deadline is a key date for Coastal Financial Corporation investors who want a voice in how this case moves forward," said Frank R. Cruz of The Law Offices of Frank R. Cruz.

What should Coastal Financial Corporation investors do now?

The Law Offices of Frank R. Cruz can help Coastal Financial Corporation investors evaluate potential claims to recover their losses.

Investors who want to serve as lead plaintiff in the Coastal Financial Corporation class action must file a motion with the Court by December 1, 2026. For more information, visit the Coastal Financial Corporation case page, email info@frankcruzlaw.com, or call 310-914-5007.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

Investors may retain counsel of their choice. Coastal Financial Corporation investors who bought during the class period may also take no action and remain absent class members. No class has been certified yet in the Coastal Financial Corporation case.

Questions and answers about the Coastal Financial Corporation lawsuit

Who is eligible? Investors who bought Coastal Financial Corporation securities between October 28, 2024 and July 29, 2026 and lost money may be class members, and may seek lead plaintiff appointment by December 1, 2026.

What does a lead plaintiff do? The lead plaintiff is appointed by the court to represent all class members and direct the Coastal Financial Corporation class action.

Must I be lead plaintiff to share in a recovery? No, Coastal Financial Corporation investors can take no action and remain absent class members.

How are attorneys' fees handled? The Law Offices of Frank R. Cruz works on contingency, so Coastal Financial Corporation investors pay no attorneys' fees up front. Any attorneys' fees and litigation expenses come only from a recovery, if there is one, and require court approval.

About The Law Offices of Frank R. Cruz

The Law Offices of Frank R. Cruz investigates and prosecutes securities fraud and corporate malfeasance class actions. With nearly 20 years of litigation experience, the firm focuses on complex securities class actions and gives each client personal, one-on-one attention throughout the legal process.

Prior results do not guarantee a similar outcome.

Related links

Follow The Law Offices of Frank R. Cruz for updates on Twitter: twitter.com/FRC_LAW

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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SOURCE The Law Offices of Frank R. Cruz, Los Angeles