Important Notice Regarding Alleged CCBX Credit Quality and Risk Management Misrepresentations. The lawsuit claims Coastal promoted disciplined banking-as-a-service growth while its credit monitoring allegedly failed to detect the problems behind a $68.8 million credit expense.

NEW YORK, Oct. 15, 2026 /PRNewswire/ — SueWallSt notifies investors in Coastal Financial Corporation (NASDAQ: CCB) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between October 28, 2024 and July 29, 2026. Find out if you could qualify to recover your losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

Approximately $470 million in market capitalization was erased after Coastal disclosed a $68.8 million credit expense tied to a single CCBX partner relationship, driving a second quarter 2026 GAAP net loss of $42.1 million. According to the lawsuit, those losses trace to alleged banking-as-a-service credit quality securities fraud spanning nearly two years. Applications to serve as lead plaintiff must be filed by December 1, 2026.

The Alleged Banking-as-a-Service Credit Monitoring Methodology

Through CCBX, Coastal enables fintech partners to offer banking products to their own customers, and the segment expanded fast. CCBX loans receivable climbed from $1.60 billion at year-end 2024 to roughly $2.23 billion by mid-2026, while CCBX program fee income rose 56.9% for full-year 2024. The complaint alleges investors were assured this growth was disciplined and supported by a risk team that reportedly reached one-third of the Company’s staff by July 2025.

The lawsuit contends that Coastal’s monitoring was inadequate to identify, account for, and mitigate deterioration in partner loan portfolios. In that telling, growth allegedly outran the oversight investors were told kept pace with it.

“This case presents important questions about credit quality disclosure obligations in the banking-as-a-service sector, where a bank’s exposure depends on partner portfolios that shareholders cannot see directly. We are focused on whether Coastal’s emphasis on disciplined CCBX growth and partner protections squared with the conditions that produced a $68.8 million credit expense.” said Joseph E. Levi, Esq.

Key CCBX Credit Quality Allegations for Shareholders

• The $68.8 million credit expense arose from a single CCBX partner relationship, despite repeated Company emphasis on credit quality.
• The charge combined a $46 million valuation adjustment to a credit enhancement asset with a $22.8 million provision for credit losses.
• Credit monitoring practices were allegedly inadequate to detect or contain the deterioration before it reached reported results.
• Statements about CCBX growth, credit quality, and partner protections are alleged to have been materially false or misleading when made.

The Indemnification Factor

Coastal described its CCBX partner contracts as providing near-complete indemnification against credit risk on partner loan balances. Plaintiffs allege that this protection was overstated, and that deterioration in a partner portfolio exposed Coastal to significant losses despite the contractual safeguards shareholders were told were in place.

Submit your information here 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: Who is eligible to join the CCB investor lawsuit? A: Investors who purchased CCB stock or securities between October 28, 2024 and July 29, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses — not on whether you still hold the shares.

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 banking-as-a-service 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 a $68.8 million credit expense tied to a single CCBX partner relationship was disclosed, the stock price declined sharply.

Q: What court was the CCB class action filed in? A: The case was filed in the United States District Court for the Western District of Washington at Seattle, governed by the Private Securities Litigation Reform Act of 1995.

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 does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

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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SOURCE SueWallSt.com