Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Coastal Financial Corporation (““Coastal Financial” or the “Company”) (NASDAQ: CCB) and reminds investors of the December 1, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

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Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: The foregoing statements were materially false and misleading when made because, while touting the continued growth of the CCBX business and representing that such growth was being pursued in a disciplined manner with a focus on risk management and credit quality, Defendants misrepresented and failed to disclose that: (i) 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; (ii) as a result of that deterioration, Coastal faced significant exposure to credit losses notwithstanding Defendants’ repeated representations concerning the credit protections provided by its CCBX partner agreements; and (iii) Coastal’s risk management and credit monitoring practices were inadequate to identify, adequately account for, and mitigate the deterioration of the CCBX partner loan portfolio and the resulting risks to Coastal.

On July 30, 2026, Coastal announced its second quarter 2026 financial results, 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, and held its first-ever earnings call acknowledging “significant and unusual items that warrant a direct explanation.” On this news, Coastal’s stock price fell $30.75, or 43.5%, to close at $39.91 per share on July 30, 2026, erasing approximately $470 million in market capitalization.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Coastal Financial’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Coastal Financial class action, go to www.faruqilaw.com/CCB or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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Frequently Asked Questions (FAQ) for Investors Regarding the Coastal Financial Securities Class Action Lawsuit:

What is the Coastal Financial securities fraud lawsuit about?

The lawsuit alleges that throughout the Class Period, Coastal Financial and certain of its officers made materially false and misleading statements regarding the growth and risk management of its CCBX banking-as-a-service business. Specifically, the complaint alleges that defendants misrepresented 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, and that Coastal’s risk management and credit monitoring practices were allegedly inadequate to identify and mitigate that deterioration. The alleged misrepresentations are said to have concealed Coastal’s significant exposure to credit losses, notwithstanding defendants’ repeated representations concerning the credit protections provided by its CCBX partner agreements. The lawsuit alleges these facts came to light on July 30, 2026, when Coastal reported a GAAP net loss of $42.1 million for the second quarter of 2026, driven primarily by a $68.8 million credit expense related to a single CCBX partner relationship, causing Coastal’s stock price to fall approximately 43.5% in a single trading session.

Who may be eligible to participate in the lawsuit?

Investors who purchased or otherwise acquired shares of Coastal Financial Corporation (NASDAQ: CCB) on the NASDAQ stock exchange between October 28, 2024 and July 29, 2026, inclusive, may be eligible to participate in the class action. The lawsuit is structured as a class action, meaning that eligible investors do not need to take any affirmative step to be included as a member of the proposed class, provided they meet the applicable criteria. Importantly, participation in any potential recovery that may result from this litigation is not limited to those investors who seek appointment as lead plaintiff — class members who take no active role in the case may still share in any recovery that is obtained. Investors who believe they purchased Coastal Financial shares during the Class Period are encouraged to review their trading records and consider their legal options promptly.

What is a lead plaintiff, and how can I seek appointment?

A lead plaintiff is a court-appointed representative who acts on behalf of all class members in directing the litigation, including making key decisions regarding litigation strategy, the selection of lead counsel, and the negotiation of any potential settlement. Under the Private Securities Litigation Reform Act of 1995, any investor or group of investors who purchased Coastal Financial shares during the Class Period and suffered a loss may move the court for appointment as lead plaintiff. The deadline to file a motion for appointment as lead plaintiff in this action is December 1, 2026, and investors who wish to seek that role are encouraged to consult with counsel well in advance of that date. Critically, an investor need not seek appointment as lead plaintiff in order to participate in or share in any recovery that the litigation may produce — the vast majority of class members participate without serving in that capacity. Investors interested in seeking lead plaintiff appointment may contact Faruqi & Faruqi, LLP to discuss their eligibility and the process involved.

Why should investors contact Faruqi & Faruqi, LLP?

Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Coastal Financial securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

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