Coastal Financial faces securities class action; shares drop 43%

SAN FRANCISCO, Oct. 8, 2026 // -- Coastal Financial Corporation (NASDAQ: CCB) faces a securities class action lawsuit that seeks to represent investors who purchased or otherwise acquired shares of Coastal common stock between October 28, 2024 and July 29, 2026. The lawsuit follows a 43% single-day stock plunge triggered by a massive provision for credit losses and unexpected valuation adjustments within its core CCBX Banking-as-a-Service (BaaS) segment. National shareholders rights firm Hagens Berman continues its investigation into claims that Coastal was not sufficiently transparent about credit risk management practices and therefore violated federal securities laws. Hagens Berman urges Coastal investors who suffered substantial financial losses to submit their trading information before the Lead Plaintiff deadline. Whistleblowers and insiders with non-public knowledge regarding Coastal Financial's loan underwriting, partner risk oversight, or internal controls are also invited to contact the firm. -- Class Period: Oct. 28, 2024 -- July 29, 2026 -- Lead Plaintiff Deadline: Dec. 1, 2026 -- Visit: -- Contact Email: CCB@hbsslaw.com -- Direct Firm Phone: 844-916-0895 Coastal Financial Corporation (CCB) Securities Class Action Overview: The litigation focuses on Coastal's repeated touting of growth in its CCBX BaaS segment and assurances that it pursued such growth in a disciplined manner with a focus on effective risk management and credit quality. For example, Coastal's assurances during the Class Period included statements such as "we continue to make strategic decisions which are enhancing credit quality," "our strategy involves selectively expanding our current base of CCBX partners while continuing to invest in and enhance our technology and risk management infrastructure[,]" and the company remained "fully indemnified against fraud and 98.8% indemnified against credit risk with our CCBX partners[.]" The complaint alleges that these and other statements during the Class Period were misleading because the company did not disclose that the credit quality of a substantial CCBX partner portfolio, comprising roughly $500 million in loans and nearly 23% of all CCBX loans, had materially deteriorated. In turn, Coastal faced significant exposure to credit losses because the company's risk management and credit monitoring were inadequate to identify, properly account for, and mitigate the deterioration of that portfolio. The Truth Comes to Light on July 30, 2026 - Q2 2026 Disclosures Triggers 43% Share Collapse The true effectiveness of Coastal's credit risk management and internal controls was revealed on July 30, 2026, when the company reported its Q2 2026 financial results: -- Significant Financial Loss: Coastal posted a net loss of $42.1 million (or -$2.76 per diluted share), drastically missing consensus profit estimates. -- Rising Credit Expenses: The losses were driven overwhelmingly by $68.8 million in pre-tax charges tied to