SueWallSt Reminds Shareholders of a Lead Plaintiff Deadline of December 1, 2026 in Coastal Financial Corporation Lawsuit - CCB

Alert: Claims Focus on Alleged Misrepresentations About CCBX Risk Monitoring. The action contends that a risk team Coastal described as one-third of its workforce allegedly failed to disclose the deterioration in a partner’s loan portfolio that later resulted in a $68.8 million credit expense

NEW YORK, Oct. 13, 2026 (GLOBE NEWSWIRE) -- SueWallSt announces that a securities class action has been filed against Coastal Financial Corporation (NASDAQ: CCB) over an alleged BaaS risk monitoring failure at the bank's CCBX unit. You may be affected if you purchased Coastal common stock between October 28, 2024 and July 29, 2026, and lost money on that investment. Find out if you might qualify for recovery or contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

A $68.8 million credit expense tied to one fintech partner drove a second-quarter 2026 GAAP net loss of $42.1 million and erased approximately $470 million in market capitalization, as pleaded. Motions for lead plaintiff must be filed with the Court by December 1, 2026.

Credit Monitoring and the Fintech Partner Model

Through CCBX, Coastal provides banking-as-a-service to digital financial providers and brands, including originating loans through its partner programs and assuming credit exposure to those loans. That model makes partner-level credit surveillance the central operational control, because a souring portfolio can leave the bank with losses even when indemnification agreements exist.

Plaintiffs allege that Coastal's risk management and credit monitoring practices were inadequate to identify, account for, and mitigate deterioration in one partner portfolio of approximately $500 million. The action contends this occurred while the Company continued promoting disciplined CCBX expansion.

The Alleged 39% CCBX Loan Acceleration

CCBX loans receivable climbed from $1.60 billion at December 31, 2024 to approximately $2.23 billion in gross loans by June 30, 2026, a gain of roughly 39%. During 2025 alone, CCBX's share of Coastal's total loans receivable rose from 45.9% to 48.1%. It is alleged that the monitoring framework failed to flag deterioration concentrated in a single partner relationship.

Alleged BaaS Risk Monitoring Failure by the Numbers

• Risk personnel grew from 29% of Coastal's staff in April 2025 to one-third (33%) by July 2025, per investor presentations cited in the lawsuit.
• One of 22 active CCBX partners accounted for nearly 23% of all CCBX loans as of June 30, 2026.
• The $68.8 million charge comprised a $46 million valuation adjustment to the related credit enhancement asset and a $22.8 million provision for credit losses.
• The complaint calculates that the expense equaled nearly 14% of that partner's entire loan portfolio.
• CCBX program fee income rose 56.9% for full-year 2024 and another 22.3% in the first quarter of 2026.
  
  

"The complaint raises serious questions about whether investors received accurate information about how closely Coastal was monitoring its partner loan portfolios. Shareholders were told that Coastal had a substantial risk-management function, yet the lawsuit alleges deterioration in a single partner book went undisclosed until it produced a $68.8 million credit expense." -- Joseph E. Levi, Esq.

Submit your information now or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the CCB Lawsuit

Q: How much did CCB stock drop? A: Shares fell approximately 43.5%, a decline of $30.75 per share, after the Company disclosed a second-quarter 2026 GAAP net loss of $42.1 million driven by a $68.8 million credit expense associated with a single CCBX partner relationship. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What specific misstatements does the CCB lawsuit allege? A: The complaint alleges Coastal Financial Corporation made materially false or misleading statements regarding the growth and credit quality of its CCBX business, the adequacy of its risk management and credit monitoring practices, and the credit protections afforded by its CCBX partner indemnification agreements during the Class Period. When the $68.8 million credit expense tied to a single CCBX partner relationship was disclosed, the stock price declined sharply.

Q: When did Coastal Financial Corporation allegedly mislead investors? A: The Class Period runs from October 28, 2024 to July 29, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.

Q: What if I already sold my CCB shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@SueWallSt.com

Tel: (888) SueWallSt

Fax: (212) 363-7171

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