The complaint, filed by Glancy Prongay Wolke & Rotter LLP, targets a period between October 28, 2024, and July 29, 2026. Plaintiffs allege that Coastal Financial executives repeatedly misled shareholders regarding the health of a $500 million loan portfolio, which accounted for nearly 23% of all CCBX loans. Despite public assurances of robust credit protections, the filing contends the company’s internal risk management and monitoring systems failed to account for significant credit loss exposure.

Those who purchased securities during the specified window may participate in the litigation, though the court has not yet certified a class. Interested parties seeking to serve as lead plaintiff must file their motions by the December 1 deadline. Legal representatives for the suit, Glancy Prongay Wolke & Rotter LLP, noted that shareholders are not required to take immediate action to remain absent class members, though those wishing to pursue claims can contact the firm via email at [email protected] or by phone at 310-201-9150.