The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed on behalf of investors who acquired Coastal Financial Corporation (“Coastal” or the “Company”) (NASDAQ: CCB) securities between October 28, 2024 and July 29, 2026, inclusive (“the Class Period”). If you suffered a loss on your Coastal investments, you have until December 1, 2026 to request lead plaintiff appointment.

[CONTACT THE FIRM IF YOU SUFFERED A LOSS]

Investors are encouraged to fill out the contact form above or contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com to discuss your rights or interests in the securities fraud class action lawsuit at no cost.

What Is This Lawsuit About? The lawsuit alleges that Coastal failed to disclose that: (i) the credit quality of a substantial CCBX partner loan portfolio, comprising approximately $500 million in loans and nearly 23% of all CCBX loans, had materially deteriorated; (ii) as a result of that deterioration, Coastal faced significant exposure to credit losses notwithstanding Defendants’ repeated representations concerning the credit protections provided by its CCBX partner agreements; and (iii) Coastal’s risk management and credit monitoring practices were inadequate to identify, adequately account for, and mitigate the deterioration of the CCBX partner loan portfolio and the resulting risks to Coastal.

On July 30, 2026, Coastal announced its second quarter 2026 financial results, reporting a GAAP net loss of $42.1 million, driven primarily by a $68.8 million credit expense related to a single CCBX partner relationship. Coastal also held its first-ever earnings call, asserting that the quarter included “significant and unusual items that warrant a direct explanation.” During the earnings call, the Company disclosed that the credit expense consisted of a $46 million valuation adjustment to the related credit enhancement asset and a $22.8 million provision for credit losses associated with the partner’s indemnification obligations. On this news, the price of Coastal shares declined by $30.75 per share, or approximately 43.5%, from $70.66 per share on July 29, 2026 to close at $39.91 on July 30, 2026.

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The Lead Plaintiff Appointment Process. The federal securities laws permit any investor who acquired eligible securities during the class period to seek appointment as lead plaintiff in a class action lawsuit. Courts do not consider lead plaintiff applications submitted after the relevant deadline. If you choose to take no action, you may remain an absent class member. Learn more about the lead plaintiff process and eligibility requirements here. Courts typically appoint the investor(s) with the largest financial loss in the case and the ability to represent the class rather than investors with simply the largest investment portfolio. Courts regularly appoint individual investors, whether acting alone or as a group, as lead plaintiffs. The rights of any investor who bought shares during the class period are generally already protected. However, lead plaintiffs have the power to influence case strategy and have a say in settlement decisions, as well as decisions concerning allocation of settlement funds among class members.

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What Should I Do? If you purchased or otherwise acquired Coastal securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found on Kirby McInerney LLP’s website.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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