Controversies

Class action lawsuit filed against Coastal Financial Corporation over CCBX loan portfolio disclosures

Lawsuit filed

Wolf Haldenstein Adler Freeman & Herz LLP announced on October 14, 2026 that a securities class action lawsuit has been filed against Coastal Financial Corporation (NASDAQ: CCB) on behalf of investors who purchased or otherwise acquired Coastal Financial common stock between October 28, 2024 and July 29, 2026, with a lead-plaintiff deadline of December 1, 2026. The complaint alleges that Coastal and the individual defendants made false and misleading statements and failed to 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, that Coastal faced significant exposure to credit losses despite repeated representations about credit protections in its CCBX partner agreements, and that its risk management and credit monitoring practices were inadequate. According to the complaint, Coastal announced Q2 2026 financial results on July 30, 2026 reporting a GAAP net loss of $42.1 million driven primarily by a $68.8 million credit expense related to a single CCBX partner relationship, after which the stock fell 43.5% to close at $39.91 per share.