{"success":true,"data":{"pressRelease":{"id":"178718","rtpr_id":"nPnbh5Htxa-20261023","ticker":"CCB","exchange":"NASDAQ","all_tickers":["CCB"],"title":"Coastal Financial Corporation (CCB) Faces Securities Class Action Amid Scrutiny Over BaaS Credit Risk Management Effectiveness, Shares Tank 43%","author":"PR Newswire","published_at":"2026-10-23T16:18:00.012Z","article_body":"Coastal Financial Corporation (CCB) Faces Securities Class Action Amid Scrutiny Over BaaS Credit Risk Management Effectiveness, Shares Tank 43%\nPR Newswire\n\nSAN FRANCISCO, Oct. 23, 2026\n\nSAN FRANCISCO, Oct. 23, 2026 /PRNewswire/ -- Coastal Financial Corporation\n(NASDAQ: CCB) faces a securities class action lawsuit that seeks to represent\ninvestors who purchased or otherwise acquired shares of Coastal common stock\nbetween October 28, 2024 and July 29, 2026.\n\nThe lawsuit follows a 43% single-day stock plunge triggered by a massive\nprovision for credit losses and unexpected valuation adjustments within its\ncore CCBX Banking-as-a-Service (BaaS) segment.\n\nNational shareholders rights firm Hagens Berman continues its investigation\ninto claims that Coastal was not sufficiently transparent about credit risk\nmanagement practices and therefore violated federal securities laws.\n\nHagens Berman urges Coastal investors who suffered substantial financial\nlosses to submit their trading information\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=4285198082&u=https%3A%2F%2Fwww.hbsslaw.com%2Fcases%2Fcoastal-financial-corporation-ccb-securities-class-action&a=submit+their+trading+information)\n before the Lead Plaintiff deadline. Whistleblowers and insiders with\nnon-public knowledge regarding Coastal Financial's loan underwriting, partner\nrisk oversight, or internal controls are also invited to contact the firm.\n\n * Class Period: Oct. 28, 2024 – July 29, 2026\n * Lead Plaintiff Deadline: Dec. 1, 2026\n * Visit:\nwww.hbsslaw.com/ccb\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=694230302&u=https%3A%2F%2Fwww.hbsslaw.com%2Fcases%2Fcoastal-financial-corporation-ccb-securities-class-action&a=www.hbsslaw.com%2Fccb)\n * Contact Email:\nCCB@hbsslaw.com (mailto:CCB@hbsslaw.com)\n * Direct Firm Phone: 844-916-0895\nCoastal Financial Corporation ($CCB) Securities Class Action Overview:\n\nThe litigation focuses on Coastal's repeated touting of growth in its CCBX\nBaaS segment and assurances that it pursued such growth in a disciplined\nmanner with a focus on effective risk management and credit quality.\n\nFor example, Coastal's assurances during the Class Period included statements\nsuch as \"we continue to make strategic decisions which are enhancing credit\nquality,\" \"our strategy involves selectively expanding our current base of\nCCBX partners while continuing to invest in and enhance our technology and\nrisk management infrastructure[,]\" and the company remained \"fully indemnified\nagainst fraud and 98.8% indemnified against credit risk with our CCBX\npartners[.]\"\n\nThe complaint alleges that these and other statements during the Class Period\nwere misleading because the company did not disclose that the credit quality\nof a substantial CCBX partner portfolio, comprising roughly $500 million in\nloans and nearly 23% of all CCBX loans, had materially deteriorated. In turn,\nCoastal faced significant exposure to credit losses because the company's risk\nmanagement and credit monitoring were inadequate to identify, properly account\nfor, and mitigate the deterioration of that portfolio.\n\nThe Truth Comes to Light on July 30, 2026 - Q2 2026 Disclosures Triggers 43%\nShare Collapse\n\nThe true effectiveness of Coastal's credit risk management and internal\ncontrols was revealed on July 30, 2026, when the company reported its Q2 2026\nfinancial results:\n\n * Significant Financial Loss: Coastal posted a net loss of $42.1 million (or\n-$2.76 per diluted share), drastically missing consensus profit estimates.\n * Rising Credit Expenses: The losses were driven overwhelmingly by $68.8 million\nin pre-tax charges tied to a single CCBX partner relationship and associated\nconsumer loan portfolios, including a $46 million valuation adjustment to\ncredit enhancement assets and a $22.8 million spike in credit loss provisions.\n * CFO Departure: Compounding market instability, the company announced the\nimpending departure of its Chief Financial Officer just ahead of the earnings\nrelease.\n * Immediate Stock Decline: CCB shares crashed $30.75 per share, or 43.5%, in a\nsingle trading session, dropping from a close of $70.66 to close at $39.91 on\nheavy volume.\n\"We're focused on when Coastal first detected this single partner problem and\nwhether it may have misled investors about the effectiveness of its initial\nunderwriting and ongoing credit risk management,\" said Reed Kathrein\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=2402929199&u=https%3A%2F%2Fwww.hbsslaw.com%2Fattorneys%2Freed-kathrein&a=Reed+Kathrein)\n, the Hagens Berman partner leading the firm's investigation.\n\nIf you invested in Coastal Financial and have substantial losses, or have\nknowledge that will assist the firm's investigation, submit your losses now\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=3676597057&u=https%3A%2F%2Fwww.hbsslaw.com%2Fcases%2Fcoastal-financial-corporation-ccb-securities-class-action&a=submit+your+losses+now)\n »\n\nWhistleblowers: Persons with non-public information regarding Coastal\nFinancial should consider their options to help in the investigation or take\nadvantage of the SEC Whistleblower program. Under the new program,\nwhistleblowers who provide original information may receive rewards totaling\nup to 30 percent of any successful recovery made by the SEC. For more\ninformation, call Reed Kathrein at 844-916-0895 or email CCB@hbsslaw.com\n(mailto:CCB@hbsslaw.com) .\n\nAbout Hagens Berman\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=350992459&u=https%3A%2F%2Fwww.hbsslaw.com%2F&a=About+Hagens+Berman)\n\nHagens Berman is a global plaintiffs' rights complex litigation firm focusing\non corporate accountability. The firm is home to a robust practice and\nrepresents investors as well as whistleblowers, workers, consumers and others\nin cases achieving real results for those harmed by corporate negligence and\nother wrongdoings. Hagens Berman's team has secured more than $2.9 billion in\nthis area of law. More about the firm and its successes can be found\nat hbsslaw.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=4048770418&u=https%3A%2F%2Fwww.hbsslaw.com%2F&a=hbsslaw.com)\n. Follow the firm for updates and news at @ClassActionLaw\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=3419314812&u=https%3A%2F%2Fwww.twitter.com%2FClassActionLaw&a=%40ClassActionLaw)\n.\n\nAttorney Advertising. Prior results do not guarantee a similar outcome in any\nfuture case.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/coastal-financial-corporation-ccb-faces-securities-class-action-amid-scrutiny-over-baas-credit-risk-management-effectiveness-shares-tank-43-302918218.html\n(https://www.prnewswire.com/news-releases/coastal-financial-corporation-ccb-faces-securities-class-action-amid-scrutiny-over-baas-credit-risk-management-effectiveness-shares-tank-43-302918218.html)\n\nSOURCE Hagens Berman Sobol Shapiro LLP\n\n\n\nHagens Berman, Reed Kathrein, 715 Hearst Avenue, Suite 300, Berkeley, CA 94710, 844-916-0895, CCB@hbsslaw.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1117217/Hagens-Berman-Sobol-Shapiro-LLP-Logo.jpg?id=OA3036571\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPnbh5Htxa-20261023","title":"Coastal Financial Corporation (CCB) Faces Securities Class Action Amid Scrutiny Over BaaS Credit Risk Management Effectiveness, Shares Tank 43%","author":"PR Newswire","ticker":"CCB","created":"2026-10-23T16:18:00.012Z","tickers":["CCB"],"exchange":"NASDAQ","article_body":"Coastal Financial Corporation (CCB) Faces Securities Class Action Amid Scrutiny Over BaaS Credit Risk Management Effectiveness, Shares Tank 43%\nPR Newswire\n\nSAN FRANCISCO, Oct. 23, 2026\n\nSAN FRANCISCO, Oct. 23, 2026 /PRNewswire/ -- Coastal Financial Corporation\n(NASDAQ: CCB) faces a securities class action lawsuit that seeks to represent\ninvestors who purchased or otherwise acquired shares of Coastal common stock\nbetween October 28, 2024 and July 29, 2026.\n\nThe lawsuit follows a 43% single-day stock plunge triggered by a massive\nprovision for credit losses and unexpected valuation adjustments within its\ncore CCBX Banking-as-a-Service (BaaS) segment.\n\nNational shareholders rights firm Hagens Berman continues its investigation\ninto claims that Coastal was not sufficiently transparent about credit risk\nmanagement practices and therefore violated federal securities laws.\n\nHagens Berman urges Coastal investors who suffered substantial financial\nlosses to submit their trading information\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=4285198082&u=https%3A%2F%2Fwww.hbsslaw.com%2Fcases%2Fcoastal-financial-corporation-ccb-securities-class-action&a=submit+their+trading+information)\n before the Lead Plaintiff deadline. Whistleblowers and insiders with\nnon-public knowledge regarding Coastal Financial's loan underwriting, partner\nrisk oversight, or internal controls are also invited to contact the firm.\n\n * Class Period: Oct. 28, 2024 – July 29, 2026\n * Lead Plaintiff Deadline: Dec. 1, 2026\n * Visit:\nwww.hbsslaw.com/ccb\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=694230302&u=https%3A%2F%2Fwww.hbsslaw.com%2Fcases%2Fcoastal-financial-corporation-ccb-securities-class-action&a=www.hbsslaw.com%2Fccb)\n * Contact Email:\nCCB@hbsslaw.com (mailto:CCB@hbsslaw.com)\n * Direct Firm Phone: 844-916-0895\nCoastal Financial Corporation ($CCB) Securities Class Action Overview:\n\nThe litigation focuses on Coastal's repeated touting of growth in its CCBX\nBaaS segment and assurances that it pursued such growth in a disciplined\nmanner with a focus on effective risk management and credit quality.\n\nFor example, Coastal's assurances during the Class Period included statements\nsuch as \"we continue to make strategic decisions which are enhancing credit\nquality,\" \"our strategy involves selectively expanding our current base of\nCCBX partners while continuing to invest in and enhance our technology and\nrisk management infrastructure[,]\" and the company remained \"fully indemnified\nagainst fraud and 98.8% indemnified against credit risk with our CCBX\npartners[.]\"\n\nThe complaint alleges that these and other statements during the Class Period\nwere misleading because the company did not disclose that the credit quality\nof a substantial CCBX partner portfolio, comprising roughly $500 million in\nloans and nearly 23% of all CCBX loans, had materially deteriorated. In turn,\nCoastal faced significant exposure to credit losses because the company's risk\nmanagement and credit monitoring were inadequate to identify, properly account\nfor, and mitigate the deterioration of that portfolio.\n\nThe Truth Comes to Light on July 30, 2026 - Q2 2026 Disclosures Triggers 43%\nShare Collapse\n\nThe true effectiveness of Coastal's credit risk management and internal\ncontrols was revealed on July 30, 2026, when the company reported its Q2 2026\nfinancial results:\n\n * Significant Financial Loss: Coastal posted a net loss of $42.1 million (or\n-$2.76 per diluted share), drastically missing consensus profit estimates.\n * Rising Credit Expenses: The losses were driven overwhelmingly by $68.8 million\nin pre-tax charges tied to a single CCBX partner relationship and associated\nconsumer loan portfolios, including a $46 million valuation adjustment to\ncredit enhancement assets and a $22.8 million spike in credit loss provisions.\n * CFO Departure: Compounding market instability, the company announced the\nimpending departure of its Chief Financial Officer just ahead of the earnings\nrelease.\n * Immediate Stock Decline: CCB shares crashed $30.75 per share, or 43.5%, in a\nsingle trading session, dropping from a close of $70.66 to close at $39.91 on\nheavy volume.\n\"We're focused on when Coastal first detected this single partner problem and\nwhether it may have misled investors about the effectiveness of its initial\nunderwriting and ongoing credit risk management,\" said Reed Kathrein\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=2402929199&u=https%3A%2F%2Fwww.hbsslaw.com%2Fattorneys%2Freed-kathrein&a=Reed+Kathrein)\n, the Hagens Berman partner leading the firm's investigation.\n\nIf you invested in Coastal Financial and have substantial losses, or have\nknowledge that will assist the firm's investigation, submit your losses now\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=3676597057&u=https%3A%2F%2Fwww.hbsslaw.com%2Fcases%2Fcoastal-financial-corporation-ccb-securities-class-action&a=submit+your+losses+now)\n »\n\nWhistleblowers: Persons with non-public information regarding Coastal\nFinancial should consider their options to help in the investigation or take\nadvantage of the SEC Whistleblower program. Under the new program,\nwhistleblowers who provide original information may receive rewards totaling\nup to 30 percent of any successful recovery made by the SEC. For more\ninformation, call Reed Kathrein at 844-916-0895 or email CCB@hbsslaw.com\n(mailto:CCB@hbsslaw.com) .\n\nAbout Hagens Berman\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=350992459&u=https%3A%2F%2Fwww.hbsslaw.com%2F&a=About+Hagens+Berman)\n\nHagens Berman is a global plaintiffs' rights complex litigation firm focusing\non corporate accountability. The firm is home to a robust practice and\nrepresents investors as well as whistleblowers, workers, consumers and others\nin cases achieving real results for those harmed by corporate negligence and\nother wrongdoings. Hagens Berman's team has secured more than $2.9 billion in\nthis area of law. More about the firm and its successes can be found\nat hbsslaw.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=4048770418&u=https%3A%2F%2Fwww.hbsslaw.com%2F&a=hbsslaw.com)\n. Follow the firm for updates and news at @ClassActionLaw\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4805257-1&h=3419314812&u=https%3A%2F%2Fwww.twitter.com%2FClassActionLaw&a=%40ClassActionLaw)\n.\n\nAttorney Advertising. Prior results do not guarantee a similar outcome in any\nfuture case.\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/coastal-financial-corporation-ccb-faces-securities-class-action-amid-scrutiny-over-baas-credit-risk-management-effectiveness-shares-tank-43-302918218.html\n(https://www.prnewswire.com/news-releases/coastal-financial-corporation-ccb-faces-securities-class-action-amid-scrutiny-over-baas-credit-risk-management-effectiveness-shares-tank-43-302918218.html)\n\nSOURCE Hagens Berman Sobol Shapiro LLP\n\n\n\nHagens Berman, Reed Kathrein, 715 Hearst Avenue, Suite 300, Berkeley, CA 94710, 844-916-0895, CCB@hbsslaw.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1117217/Hagens-Berman-Sobol-Shapiro-LLP-Logo.jpg?id=OA3036571\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-10-23T16:18:00.070506074Z","server_sent_at_ms":1792772280070},"received_at":"2026-10-23T16:18:00.129Z","source_url":"https://www.prnewswire.com/news-releases/coastal-financial-corporation-ccb-faces-securities-class-action-amid-scrutiny-over-baas-credit-risk-management-effectiveness-shares-tank-43-302918218.html"},"analysis":{"id":"166622","press_release_id":"178718","analysis_json":{"industry":{"label":"Banks","sector":"Financials"},"redFlags":["underlying events are severe: 43.5% one-day share collapse on $68.8M CCBX partner charges and CFO departure","alleged undisclosed credit deterioration in a ~$500M portfolio (~23% of CCBX loans)","internal control and credit monitoring weaknesses alleged"],"eventType":"legal_litigation","narrative":"Hagens Berman announced a securities class action against Coastal Financial (CCB) covering investors who bought shares between Oct. 28, 2024 and July 29, 2026, with a Dec. 1, 2026 lead plaintiff deadline.\n\nThe complaint alleges Coastal misled investors about credit risk controls in its CCBX BaaS segment while a roughly $500 million partner portfolio — nearly 23% of CCBX loans — was deteriorating; Q2 2026 disclosed $68.8 million in charges and a $42.1 million net loss, triggering a 43.5% single-day collapse from $70.66 to $39.91.\n\nThe release is a plaintiff-firm solicitation seeking lead plaintiffs and whistleblowers rather than an issuer disclosure, and the stock plunge and charges it recaps were previously reported.","sentiment":"neutral","agentHooks":{"shouldPost":false,"suggestedAngle":"Plaintiff-firm solicitation recapping known CCBX credit issues — suppress; monitor issuer filings for the real disclosures."},"keyFigures":{"customDimensions":{"class_period_end":"2026-07-29","close_after_drop":39.91,"close_before_drop":70.66,"share_decline_pct":"43.5%","share_decline_usd":"$30.75","class_period_start":"2024-10-28","pretax_charges_usd":68800000,"provision_spike_usd":22800000,"net_loss_q2_2026_usd":42100000,"ccbx_loans_at_risk_usd":"$500 million","lead_plaintiff_deadline":"2026-12-01","valuation_adjustment_usd":46000000,"ccbx_partner_portfolio_pct_of_loans":"23%"}},"quotedText":"\"We're focused on when Coastal first detected this single partner problem and whether it may have misled investors about the effectiveness of its initial underwriting and ongoing credit risk management,\" said Reed Kathrein","namedEntities":{"people":[{"name":"Reed Kathrein","role":"Hagens Berman partner leading investigation"}],"products":["CCBX Banking-as-a-Service (BaaS)"],"companies":[{"name":"Coastal Financial Corporation","ticker":"CCB","relationship":"class action target"},{"name":"Hagens Berman Sobol Shapiro LLP","relationship":"plaintiff law firm"}],"dollarAmounts":[{"amount":"$42.1 million","context":"Q2 2026 net loss"},{"amount":"$68.8 million","context":"pre-tax charges tied to a single CCBX partner"},{"amount":"$46 million","context":"valuation adjustment to credit enhancement assets"},{"amount":"$22.8 million","context":"spike in credit loss provisions"},{"amount":"$500 million","context":"deteriorating CCBX partner loan portfolio"},{"amount":"$2.9 billion","context":"Hagens Berman firm track record recoveries"}]},"materialImpact":{"score":1,"reasoning":"Plaintiff law-firm solicitation issued by Hagens Berman seeking lead plaintiffs and whistleblowers; no new issuer disclosure, no certified class, and no settlement. The underlying 43% plunge and Q2 loss are recaps of previously reported events."},"tickerRelevance":{"others":[],"primary":"CCB"},"globalImportance":20,"audienceRelevance":15,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"law-firm-solicitation","issuerAuthored":false,"underlyingEventSeverity":"high but already disclosed (43% plunge, CFO exit)"}},"event_type":"legal_litigation","event_type_secondary":null,"sentiment":"neutral","material_impact_score":1,"narrative":"Hagens Berman announced a securities class action against Coastal Financial (CCB) covering investors who bought shares between Oct. 28, 2024 and July 29, 2026, with a Dec. 1, 2026 lead plaintiff deadline.\n\nThe complaint alleges Coastal misled investors about credit risk controls in its CCBX BaaS segment while a roughly $500 million partner portfolio — nearly 23% of CCBX loans — was deteriorating; Q2 2026 disclosed $68.8 million in charges and a $42.1 million net loss, triggering a 43.5% single-day collapse from $70.66 to $39.91.\n\nThe release is a plaintiff-firm solicitation seeking lead plaintiffs and whistleblowers rather than an issuer disclosure, and the stock plunge and charges it recaps were previously reported.","key_figures":{"customDimensions":{"class_period_end":"2026-07-29","close_after_drop":39.91,"close_before_drop":70.66,"share_decline_pct":"43.5%","share_decline_usd":"$30.75","class_period_start":"2024-10-28","pretax_charges_usd":68800000,"provision_spike_usd":22800000,"net_loss_q2_2026_usd":42100000,"ccbx_loans_at_risk_usd":"$500 million","lead_plaintiff_deadline":"2026-12-01","valuation_adjustment_usd":46000000,"ccbx_partner_portfolio_pct_of_loans":"23%"}},"named_entities":{"people":[{"name":"Reed Kathrein","role":"Hagens Berman partner leading investigation"}],"products":["CCBX Banking-as-a-Service (BaaS)"],"companies":[{"name":"Coastal Financial Corporation","ticker":"CCB","relationship":"class action target"},{"name":"Hagens Berman Sobol Shapiro LLP","relationship":"plaintiff law firm"}],"dollarAmounts":[{"amount":"$42.1 million","context":"Q2 2026 net loss"},{"amount":"$68.8 million","context":"pre-tax charges tied to a single CCBX partner"},{"amount":"$46 million","context":"valuation adjustment to credit enhancement assets"},{"amount":"$22.8 million","context":"spike in credit loss provisions"},{"amount":"$500 million","context":"deteriorating CCBX partner loan portfolio"},{"amount":"$2.9 billion","context":"Hagens Berman firm track record recoveries"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:5c812bd9e28b810d","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-23T16:18:07.516Z","global_importance":20,"audience_relevance":15,"importance_components":{"tickerTier":"small-cap","eventGravity":"law-firm-solicitation","issuerAuthored":false,"underlyingEventSeverity":"high but already disclosed (43% plunge, CFO exit)"}},"durationMs":7375,"modelName":"glm-5.3-flashx"}}