What's Next for Coastal Financial Corporation Shareholders After 43.52% Stock Drop? Glancy Prongay Wolke & Rotter LLP Explains Securities Fraud Class Action Lead Plaintiff Deadline

PR Newswire

LOS ANGELES, Oct. 28, 2026

Complaint alleges Coastal Financial Corporation misled investors between October 28, 2024 and July 29, 2026; investors may seek lead plaintiff role by December 1, 2026

LOS ANGELES, Oct. 28, 2026 /PRNewswire/ -- Glancy Prongay Wolke & Rotter LLP ("Glancy") announced today that the class action lawsuit covers investors who bought Coastal Financial Corporation ("Coastal Financial" or the "Company") (NASDAQ: CCB) securities between October 28, 2024 and July 29, 2026. The Coastal Financial Corporation case, Allegheny County Employees' Retirement System v. Coastal Financial Corporation et al., was filed on October 2, 2026 in the USDC Western District of Washington at Seattle (Case No. 2:26-cv-03746).

Investors who suffered losses on Coastal Financial Corporation investments can submit their Coastal Financial Corporation loss information here before the December 1, 2026 lead plaintiff deadline.

Key dates in the Coastal Financial Corporation case

Class period: October 28, 2024 to July 29, 2026
Complaint filed: October 2, 2026
Lead plaintiff deadline: December 1, 2026

What happened?

On July 30, 2026, Coastal Financial reported second quarter 2026 financial results, including a net loss of $42.1 million, or $(2.76) per diluted common share, compared to net income of $12.0 million, or $0.78 per diluted common share, in the prior quarter. The Company stated the net loss was primarily attributable to a $68.8 million credit expense related to a single, isolated CCBX (Banking-as-a-Service) partner relationship.

On this news, shares of Coastal fell $30.75 or 43.52%, to close at $39.91 on July 30, 2026, thereby injuring investors.

What is the Coastal Financial Corporation lawsuit about?

The Coastal Financial Corporation securities lawsuit alleges that, between October 28, 2024 and July 29, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Coastal Financial Corporation's business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) 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; (2) 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; (3) 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; and (4) as a result, defendants' positive statements about Coastal Financial Corporation's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

"The complaint against Coastal Financial Corporation alleges, among other things, that the Company 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. For investors who purchased during the class period, the December 1, 2026 lead plaintiff deadline is the first significant deadline to keep in mind," said Charles H. Linehan, Partner at Glancy Prongay Wolke & Rotter LLP.

What's the next step?

Glancy Prongay Wolke & Rotter LLP is a leading national shareholder rights law firm, ready to assist Coastal Financial Corporation investors in potentially pursuing claims to recover their losses.

If you wish to serve as lead plaintiff in the Coastal Financial Corporation class action, you must move the Court no later than December 1, 2026. To learn more about your rights, visit the Coastal Financial Corporation case page, email shareholders@glancylaw.com, or call 310-201-9150 (toll-free: 888-773-9224).

You may retain counsel of your choice. If you bought Coastal Financial Corporation securities during the class period, you may take no action and remain an absent class member. No class has been certified yet in the Coastal Financial Corporation case.

Frequently Asked Questions

Who is eligible? Investors who purchased or otherwise acquired Coastal Financial Corporation securities between October 28, 2024 and July 29, 2026 and suffered losses may be members of the proposed class in the Coastal Financial Corporation shareholder lawsuit. Any class member may ask the court to appoint them lead plaintiff by December 1, 2026.

What is a lead plaintiff? In the Coastal Financial Corporation class action, the lead plaintiff is the investor, or group of investors, that the court appoints to represent all class members and oversee the case. Under the Private Securities Litigation Reform Act, courts generally presume the movant with the largest financial interest is the most adequate lead plaintiff.

Do I have to be lead plaintiff to recover? No. A Coastal Financial Corporation investor's ability to share in any future recovery does not depend on serving as lead plaintiff. Coastal Financial Corporation investors may take no action and remain absent class members.

What is the deadline? Motions to serve as lead plaintiff in the Coastal Financial Corporation class action must be filed by December 1, 2026.

Does it cost anything to contact Glancy or participate in this action? Glancy represents Coastal Financial Corporation investors on a contingency fee basis, so investors pay no attorneys' fees out of pocket. Any attorneys' fees and litigation expenses are paid only from a recovery, if one is obtained, and are subject to court approval.

Can I choose my own lawyer? Yes. Coastal Financial Corporation investors may retain counsel of their choice.

Why work with Glancy on the Coastal Financial Corporation lawsuit? Glancy Prongay Wolke & Rotter LLP is a premier law firm with decades of experience representing investors and consumers in securities litigation and other complex class action litigation. Contact Glancy about the Coastal Financial Corporation lawsuit. Prior results do not guarantee a similar outcome.

About Glancy Prongay Wolke & Rotter LLP

Glancy was named one of Law360's Securities Groups of the Year and ranked second in total investor recoveries by ISS Securities Class Action Services in 2025.

Glancy's successes have been widely covered by leading news and industry publications, including The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron's, Investor's Business Daily, Forbes, and Money.

Prior results do not guarantee a similar outcome.

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Contact

Charles H. Linehan

Glancy Prongay Wolke & Rotter LLP

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

Email: shareholders@glancylaw.com

Telephone: 310-201-9150 | Toll-free: 888-773-9224

www.glancylaw.com

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