Robbins LLP announced on November 12, 2026 that a securities class action has been filed against Coastal Financial Corporation on behalf of investors who acquired common stock between October 28, 2024 and July 29, 2026.

Key Highlights

  • Class period: October 28, 2024 through July 29, 2026, inclusive, according to the filing.
  • Lead plaintiff deadline: December 1, 2026, as stated by Robbins LLP.
  • Reported net loss: Coastal disclosed a GAAP net loss of $42.1 million for the second quarter of 2026.
  • Credit expense: A $68.8 million credit expense tied to a single CCBX partner relationship drove the loss, comprising a $48 million valuation adjustment and a $22.8 million provision for credit losses.
  • Affected loan portfolio: The complaint identifies approximately $500 million in underlying loans and nearly 23% of all CCBX loans as having materially deteriorated credit quality.
  • Stock price decline: Coastal's common stock fell $30.75 per share on July 30, 2026, reportedly erasing approximately $470 million in market capitalization.

Allegations Against Coastal Financial and Its CCBX Banking-as-a-Service Segment

Coastal Financial Corporation (NASDAQ:CCB) is a registered bank holding company whose wholly owned subsidiaries include Coastal Community Bank. The company operates a banking-as-a-service segment known as CCBX, through which it partners with third parties that originate loans under Coastal's banking license. Partner indemnification agreements are described in the complaint as a key credit protection mechanism within that segment.

According to the complaint, during the class period defendants made statements about the growth and credit quality of the CCBX business, the adequacy of risk management and credit reporting practices, and the protections afforded by CCBX partner indemnification agreements. The complaint alleges those statements were materially false and misleading because Coastal allegedly failed to disclose that credit quality within a substantial portion of the CCBX partner loan portfolio had materially deteriorated, exposing the company to significant losses.

When Coastal announced its second quarter 2026 financial results on July 30, 2026, defendants acknowledged on the earnings call, according to the filing, that the quarter included "significant and unusual items that warrant a direct explanation." The disclosed credit expense of $68.8 million was attributed to a single CCBX partner relationship, with $48 million representing a valuation adjustment to the related credit enhancement asset and $22.8 million representing a provision for credit losses tied to the partner's indemnification obligations. The affected portfolio involved approximately $500 million in underlying loans, the filing states.

What Was Disclosed

The filing announces a shareholder class action against Coastal Financial Corporation related to alleged misstatements about its CCBX segment, a $42.1 million GAAP net loss for Q2 2026, a $68.8 million credit expense from one partner relationship, and a December 1, 2026 lead plaintiff deadline.