CCB Investor Alert: Johnson Fistel Encourages Coastal Financial Corporation Investors to Contact the Firm Ahead of December 1, 2026 Lead Plaintiff Deadline

SAN DIEGO, Oct. 07, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP, a shareholder-rights law firm, announces that a securities class action lawsuit has been filed in the United States District Court for the Western District of Washington on behalf of investors who purchased or otherwise acquired Coastal Financial Corporation (NASDAQ: CCB) common stock between October 28, 2024 and July 29, 2026, inclusive (the “Class Period”).

The lawsuit, captioned Allegheny County Employees’ Retirement System v. Coastal Financial Corporation, et al., No. 2:26-cv-03746, alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

To learn more and submit your information, visit:

https://www.johnsonfistel.com/investigations/coastal-financial-class-action/

What Is the Coastal Financial Class Action About?

Coastal is a bank holding company that provides traditional banking products and services through its wholly owned subsidiary, Coastal Community Bank. Coastal also operates CCBX, a banking-as-a-service platform through which it partners with digital financial service providers, companies, and brands to offer banking and other financial services to their customers.

According to the complaint, defendants made materially false or misleading statements concerning the growth and credit quality of Coastal’s CCBX business, the adequacy of its risk management and credit monitoring practices, and the protections provided by its CCBX partner indemnification agreements.

The complaint alleges that defendants misrepresented or failed to disclose material facts concerning:

(1) the credit risks associated with Coastal’s CCBX partner relationships and the extent of the Company’s exposure to credit losses;

(2) the adequacy of Coastal’s risk management and credit monitoring practices; and

(3) the effectiveness and value of contractual indemnification protections that allegedly led investors to believe Coastal was adequately protected against credit losses arising from its CCBX partner relationships.

The complaint further alleges that the truth emerged on July 30, 2026, when Coastal announced a GAAP net loss of $42.1 million for the second quarter of 2026, driven primarily by a $68.8 million credit expense related to a single CCBX partner relationship.

According to the complaint, the charge included a $46 million valuation adjustment to a credit enhancement asset and a $22.8 million provision for credit losses associated with the partner’s indemnification agreement. The affected portfolio involved approximately $500 million in underlying loans and related reimbursement exposure.

On this news, Coastal’s stock price fell $30.75 per share, or approximately 43.5%, to close at $39.91 per share on July 30, 2026.

What Is a Lead Plaintiff?

The lead plaintiff is a court-appointed investor who acts on behalf of the proposed class in directing the litigation. Investors seeking appointment as lead plaintiff must file their motions with the Court by December 1, 2026.

Serving as lead plaintiff is not required to share in any potential recovery. Investors may retain counsel of their choice, take no action, or remain absent members of the proposed class. No class has yet been certified.

Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. This press release may be considered a promotional communication. Frank J. Johnson is the attorney responsible for this communication.

Contact
Johnson Fistel, PLLP
501 W. Broadway, Suite 800
San Diego, CA 92101
James Baker, Investor Relations
(619) 814-4471
jimb@johnsonfistel.com