Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Coastal Financial Corporation (CCB)

NEW YORK, Oct. 05, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Western District of Washington on behalf of all persons or entities who purchased or otherwise acquired Coastal Financial Corporation (“Coastal” or the “Company”) (NASDAQ: CCB) securities between October 28, 2024 and July 29, 2026, inclusive (the “Class Period”).

The Complaint alleges that Defendants 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, exposing Coastal to significant losses notwithstanding the purported credit protection provided by the partner’s indemnification agreement.

The Complaint alleges that the truth was revealed on July 30, 2026, when Coastal announced its second quarter 2026 financial results and, for the first time, held an earnings call to provide investors with additional context concerning its financial performance and key developments. The Complaint continues to allege that during the call, Defendants acknowledged that the quarter included “significant and unusual items that warrant a direct explanation.” The Complaint further alleges that Coastal reported a surprise GAAP net loss of $42.1 million, driven primarily by a $68.8 million credit expense associated with a single CCBX partner relationship. The Complaint alleges that the credit expense consisted of a $46 million valuation adjustment to the related credit enhancement asset and a $22.8 million provision for credit losses associated with the partner’s indemnification obligations. The Complaint continues to allege that Defendants further disclosed that the affected portfolio consisted of approximately $500 million in underlying loans, together with the related reimbursement exposure.

The Complaint alleges that on this news, the Company’s common stock price fell $30.75 per share, or 43.5%, to close at $39.91 per share on July 30, 2026, erasing approximately $470 million in market capitalization and causing substantial losses to investors.

Investors who purchased or otherwise acquired shares of Coastal should contact the Firm prior to the December 1, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.