Coinbase Global Inc. and its current and former executives have successfully dismissed a lawsuit alleging they misled investors about the robustness of the company's anti-money-laundering (AML) and know-your-customer (KYC) verification programs. The ruling came from Judge Joel H. Slomsky of the US District Court for the Eastern District of Pennsylvania, who dismissed the proposed class action on Wednesday.
The judge determined that Coinbase had adequately disclosed ongoing regulatory examinations by the New York Department of Financial Services and the UK’s Financial Conduct Authority. He emphasized that a company is not obligated to accuse itself of unadjudicated wrongdoing while investigations are pending.
Other statements made by Coinbase regarding the strength of its programs were deemed nonactionable corporate puffery or opinions, according to the ruling. This means the court viewed these statements as general promotional language rather than actionable claims.