Coinbase agreed to pay a $2.25 million settlement to end the Dogecoin sweepstakes lawsuit

ChainCatcher reported that Coinbase and marketing firm Marden-Kane recently agreed to pay a $2.25 million settlement to settle a multi-year class action lawsuit.

The lawsuit alleges false advertising by failing to explicitly inform users that participation was free in a Dogecoin trading sweepstakes held in June 2021. Under the settlement agreement, U.S. users who trade at least $100 in Dogecoin during the campaign period will be compensated for the fees and spreads they incur on their first transaction.

According to the data, Coinbase earned about $1.3 million in fee income from related transactions during the event. The lawsuit began in 2021 with plaintiff David Suski claiming that he was unable to find a free entry clause for the event, resulting in him still trading through Coinbase even though he already held Dogecoin. The U.S. Supreme Court rejected Coinbase's request for compulsory arbitration last year.

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