The complaint centers on claims that Coastal Financial failed to disclose the material deterioration of a $500 million CCBX partner loan portfolio, which accounts for nearly 23% of the firm's total loans. According to the filing, the company allegedly misled shareholders by downplaying credit risks and claiming superior protections from partner agreements that failed to materialize.

Beyond the portfolio issues, the suit contends that Coastal’s internal risk management and credit monitoring systems were insufficient to address these mounting liabilities. These shortcomings allegedly rendered the company’s public statements regarding its business operations and financial prospects fundamentally misleading. Shareholders seeking to represent the class or inquire about their legal standing are directed to contact the Law Offices of Frank R. Cruz by the December deadline.