The United States Supreme Court has granted Coinbase's request to review a lawsuit regarding the company's arbitration clause with its customers. Coinbase had attempted to move a dispute arising from a 2021 sweepstakes into private arbitration, but a lower court ruled that Coinbase had waived this right.
The lawsuit against Coinbase, filed in 2021, accuses the exchange of concealing the fact that users could participate in a $1.2 million Dogecoin giveaway without having to trade $100 of the meme cryptocurrency on its platform. This legal action is separate from the lawsuit against Elon Musk, which alleges price manipulation.
<h2>Coinbase Faces $5 Million Lawsuit Over Alleged Deceptive Sweepstakes Practices</h2>
The plaintiff, David Suski, who brought a $5 million <a href="https://www.classaction.org/media/suski-v-coinbase-global-inc-et-al.pdf" target="_blank" rel="nofollow noopener">lawsuit</a> against Coinbase, alleges that he was deceived into trading $100 of Dogecoin for a chance to enter the sweepstakes. He argues that he would not have made the transaction if Coinbase had transparently disclosed the option for free entry. Suski claims that Coinbase violated state and federal laws, including deceptive trade practices and false advertising.
The revelation of the free entry option left many users feeling misled, and they expressed their discontent on forums, accusing Coinbase of trying to hide information to artificially boost demand and trading volume. This controversy has also reignited criticism of Coinbase's handling of <a href="https://www.cryptoknowmics.com/news/shiba-inu-coin-vs-dogecoin-a-battle-of-memes-and-cryptocurrencies/" target="_blank" rel="noopener">Dogecoin</a>, with some suggesting that the exchange's listing of the meme token primarily served to generate publicity and trading fees.
<h2>Coinbase's Arbitration Battle Heads to Supreme Court, Raises Questions on Contract Clauses</h2>
Coinbase made significant efforts to compel the lawsuit into private arbitration, but a judge ruled that the sweepstakes terms, specifying California courts as the venue, took precedence over the account agreements. The Supreme Court's decision to hear this case may have broader implications for arbitration clauses in contracts and raise questions about their enforceability. It could set a precedent for how similar disputes are resolved in the future.

Coinbase Fails to Dismiss Dogecoin Class Action Suit

Coinbase's dismissal bid denied in Dogecoin class action lawsuit. What's next in this legal battle? Get the details.

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more
than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

Coinbase Fails to Dismiss Dogecoin Class Action Suit

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