A Delaware Chancery Court judge refused to dismiss a 2023 shareholder lawsuit accusing Coinbase directors — including CEO Brian Armstrong and board member Marc Andreessen — of using confidential information to avoid more than $1 billion in losses by selling shares around Coinbase’s 2021 direct listing. The complaint alleges insiders sold over $2.9 billion in stock (Armstrong ~$291.8M; Andreessen ~$118.7M). A special litigation committee had cleared the directors after a 10-month probe, but the judge found questions about the committee member Gokul Rajaram’s independence sufficient to keep the case alive. Defendants and Coinbase deny wrongdoing; the article also notes new allegations that some traders profited from advance knowledge of token listings and that Coinbase plans to change its token listing process to reduce leaks.

The court denied dismissal of a shareholder suit alleging directors used confidential information to avoid >$1B in losses and that insiders sold >$2.9B in stock; questions about the special committee member’s independence keep the case alive. These are concrete legal allegations and procedural developments that can affect investor perception. Coinbase and defendants deny wrongdoing; separate allegations of token-listing leaks and planned changes to listing process add further governance and market-risk relevance.