LOS ANGELES, Oct. 14, 2026 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Coastal Financial Corporation, (“Coastal” or the "Company") (NASDAQ: CCB) investors of a class action on behalf of investors that bought securities between October 28, 2024 and July 29, 2026, inclusive (the “Class Period”). Coastal investors have until December 1, 2026 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or join the case via https://portnoylaw.com/coastal-financial-corporation. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The class action lawsuit filed against Coastal Financial Corporation claims that during the Class Period, the defendants provided misleading information and concealed key operational risks. Specifically, the suit asserts that defendants hid a major decline in credit quality within a key CCBX partner portfolio—which represented roughly $500 million in loans and nearly 23% of the total CCBX loan base. Consequently, the company was heavily exposed to credit losses despite assurances regarding protections under its partner contracts, while its internal credit monitoring and risk management systems proved inadequate to identify or address these compounding risks. The legal action further highlights that on July 30, 2026, Coastal Financial published its second-quarter financial statements and conducted an earnings call. Management acknowledged on the call that the period featured exceptional items requiring explanation, ultimately posting an unexpected GAAP net loss of $42.1 million. This loss was largely driven by a $68.8 million credit charge tied to one CCBX partner, which included a $46 million valuation write-down on a credit enhancement asset alongside a $22.8 million credit loss provision for the partner's indemnification commitments. Defendants confirmed that this issue impacted approximately $500 million in underlying loans and associated reimbursement risks. Following these disclosures, Coastal Financial’s equity plummeted by more than 43%.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA, NY and TX Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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