What is the Coastal Financial Corporation class action lawsuit about?

The securities class action against Coastal Financial Corporation (NASDAQ: CCB) alleges that the company made materially false and misleading statements about the growth and risk management of its CCBX business. Specifically, the lawsuit alleges that defendants failed to disclose that a substantial CCBX partner loan portfolio had materially deteriorated in credit quality, exposing the company to significant credit losses.

Who is eligible to join the Coastal Financial CCB securities class action?

Investors who purchased Coastal Financial Corporation securities between October 28, 2024 and July 29, 2026 may be eligible to participate in the class action. Those who suffered losses during this class period should review their legal options before the lead plaintiff deadline.

What is the deadline to file a lead plaintiff motion in the Coastal Financial lawsuit?

The deadline to seek appointment as lead plaintiff in the Coastal Financial securities class action is December 1, 2026. Investors do not need to be named lead plaintiff to participate in or recover from any settlement.

What did Coastal Financial allegedly misrepresent to investors?

The lawsuit alleges that Coastal Financial touted disciplined growth and strong risk management in its CCBX business while concealing that approximately $500 million in CCBX partner loans — nearly 23% of all CCBX loans — had experienced material credit quality deterioration. The complaint further alleges that the company's risk management and credit monitoring practices were inadequate to identify and mitigate the resulting exposure to credit losses.

What is the CCBX business and why is it central to the Coastal Financial lawsuit?

CCBX is Coastal Financial Corporation's banking-as-a-service segment, through which the bank partners with fintech companies to originate loans. The lawsuit alleges that while defendants repeatedly represented that CCBX growth was being pursued with a focus on credit quality, they failed to disclose that a significant portion of the CCBX partner loan portfolio had materially deteriorated.

Where was the Coastal Financial class action lawsuit filed?

The Coastal Financial Corporation securities class action was filed in the United States District Court for the Western District of Washington. This is the court where any related legal proceedings in this matter will take place.

Did Coastal Financial's partner agreements protect investors from credit losses as the company claimed?

The lawsuit alleges that defendants repeatedly represented that credit protections provided by CCBX partner agreements shielded the company from significant credit loss exposure. Despite these representations, the complaint alleges that Coastal Financial faced material exposure to credit losses due to the deterioration of a roughly $500 million CCBX partner loan portfolio.

What does the Coastal Financial lawsuit allege about the company's risk management practices?

The complaint alleges that Coastal Financial's risk management and credit monitoring practices were inadequate to identify, properly account for, and mitigate deterioration in its CCBX partner loan portfolio. This allegedly stands in contrast to defendants' public statements portraying a disciplined, risk-focused approach to CCBX growth.

Coastal Financial Corporation - Faruqi & Faruqi LLP

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Case Details

Ticker CCB

Class Period 10/28/2024 - 07/29/2026

Lead Plaintiff Deadline 12/01/2026

Days Left to Seek Lead Plaintiff

If you are a Coastal Financial Corporation investor who suffered a loss and would like to learn more, you can provide your information below:

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Coastal Financial To Contact Him Directly To Discuss Their Options

If you purchased or acquired securities in Coastal Financial between October 28, 2024 and July 29, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Coastal Financial Corporation (“Coastal Financial” or the “Company”) (NASDAQ: CCB) and reminds investors of the December 1, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: The foregoing statements were materially false and misleading when made because, while touting the continued growth of the CCBX business and representing that such growth was being pursued in a disciplined manner with a focus on risk management and credit quality, Defendants misrepresented and failed to disclose that: (i) 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; (ii) 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; and (iii) 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.

Lead Plaintiff Deadline: December 1, 2026

Call Partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310). Or submit your information below to learn about your rights.

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