Supreme Court Sides with Investors in Lawsuit Against Coinbase

IconCryptoNewsTerminal Staff23 May, 2024

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Supreme Court Sides with Investors in Lawsuit Against Coinbase

The U.S. Supreme Court has granted a request from investors in a class-action lawsuit against cryptocurrency exchange Coinbase, allowing the case to proceed in court rather than being sent to arbitration. The lawsuit, filed two years ago, accuses Coinbase of misleading users into paying to participate in a promotional campaign for Dogecoin (DOGE). The investors allege that Coinbase failed to disclose that it was the sole beneficiary of the promotion and that it inflated the price of DOGE to increase its own profits. Coinbase sought to have the case sent to arbitration, arguing that the investors had agreed to arbitrate any disputes with the company. However, the Supreme Court ruled that the case presents "arbitration-unfriendly issues" and that a court, not an arbitrator, should decide where the dispute will be heard. The Supreme Court's decision is a significant victory for investors in cryptocurrency lawsuits. It means that investors will have the opportunity to have their cases heard in a public forum, rather than being forced to arbitrate them privately. ```

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