CCB Shareholder Alert: Coastal Financial Corporation Securities Class Action Lawsuit - Investors Should Contact Levi & Korsinsky

Key Dates and Disclosure Events Shareholders Need to Know: The lawsuit alleges Coastal's CCBX credit assurances continued through 21 months of growth and executive turnover before a $68.8 million single-partner credit expense emerged.

NEW YORK, Nov. 4, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP encourages investors who suffered losses in Coastal Financial Corporation (NASDAQ: CCB) to contact the firm. Those who purchased Coastal common stock between October 28, 2024 and July 29, 2026 may be eligible to seek recovery of their losses. See if you could be eligible to recover, or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

The Coastal Financial timeline disclosure events at the center of this case span 21 months and end in a single trading session. CCB closed at $70.66 on July 29, 2026, then fell $30.75 per share, or 43.5%, to $39.91 on July 30, 2026, erasing approximately $470 million in market capitalization. The window to apply for lead plaintiff closes on December 1, 2026.

Coastal Financial Timeline Disclosure Events: Quarter After Quarter of Growth

Beginning October 28, 2024, the lawsuit chronicles a steady run of quarterly releases. According to the lawsuit, those releases presented the CCBX banking-as-a-service segment as expanding in a disciplined, risk-aware manner, including April 29, 2025 results issued under the heading "Positive Growth Trends within CCBX Continue." Plaintiffs allege that beneath that narrative, the credit quality of one large partner portfolio was materially deteriorating and went undisclosed.

Turnover at the Top: Dates That Preceded the Disclosure

As detailed in the action, the alleged warning signs multiplied as leadership turned over:

• August 13, 2025: Coastal announced four new executive appointments, including a new Chief Credit Officer.
• September 22, 2025: Coastal named a new Chief Financial Officer.
• October 2, 2025: Coastal disclosed that its Chief Risk Officer had resigned, effective September 29, 2025.
• October 29, 2025: Four weeks later, Coastal said it remained "confident in our ability to manage expenses and maintain credit quality."
• July 22, 2026: The Company announced its CFO would step down effective August 15, 2026. That came less than ten months into the role and eight days before the credit expense surfaced.

July 30, 2026: A $68.8 Million Credit Expense on Coastal's First-Ever Earnings Call

Before the market opened, Coastal reported a surprise second quarter 2026 GAAP net loss of $42.1 million. The loss was driven primarily by a $68.8 million credit expense tied to a single CCBX partner relationship. On the call, management acknowledged "significant and unusual items that warrant a direct explanation."

The complaint recounts that the expense combined two pieces: a $46 million valuation adjustment to a credit enhancement asset and a $22.8 million provision for credit losses.

"Timely disclosure of material developments is fundamental to fair and efficient markets. The complaint further alleges that Coastal made assurances about CCBX credit quality despite the resignation of its Chief Risk Officer and the announced departure of its CFO just eight days before the credit expense was reported. The case raises important questions about when that exposure was first understood inside the Company." -- Joseph E. Levi, Esq.

Calculate your potential recovery or call (212) 363-7500.

Levi & Korsinsky, LLP — Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.

Frequently Asked Questions About the CCB Lawsuit

Q: What specific misstatements does the CCB lawsuit allege? A: The complaint alleges Coastal Financial Corporation made materially false or misleading statements during the Class Period. The alleged misstatements concern 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. When Coastal disclosed a $68.8 million credit expense associated with a single CCBX partner relationship and a second quarter 2026 GAAP net loss of $42.1 million, 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 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, 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: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution. Timing depends on the court schedule, case developments, and whether the matter is dismissed, settled, or litigated further.

CONTACT:\

Levi & Korsinsky, LLP\

Joseph E. Levi, Esq.\

Ed Korsinsky, Esq.\

33 Whitehall Street, 27th Floor\

New York, NY 10004\

jlevi@levikorsinsky.com\

Tel: (212) 363-7500\

Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP