The U.S. Court of Appeals for the Ninth Circuit has sided with Coinbase Global Inc., represented by Keker attorneys Steven Ragland, Erin Meyer, Steven Hirsch, and Robyn Pariser, citing a recent U.S. Supreme Court precedent that a district court cannot deny a stay in a case after compelling arbitration.
In dismissing the plaintiffs’ appeal, Ninth Circuit Judges Mary McKeown, Lucy Koh and Anthony Johnstone vacated the district court’s dismissal of the case and remanded it for a stay pending arbitration. The ruling clarifies a U.S. Supreme Court precedent in Smith v. Spizzirri and marks a win for Coinbase in a case with claims exceeding $5 million.
The underlying dispute involves a disagreement over the timing of an “airdrop” of new cryptocurrencies into users’ digital wallets, with plaintiffs alleging that Coinbase delayed the release of two new digital assets. The case is pending arbitration, and the court noted the plaintiffs would have the opportunity to appeal any arbitration outcome once arbitration concludes.
Speaking on the outcome, a spokesperson for Coinbase remarked, “In the time since the plaintiff filed his complaint, nearly two years have passed. During the time, he could have gone to arbitration and obtained a decision on the merits. Instead, he wasted these years litigating in court whether the case should be in arbitration in the first place. We look forward to resolving this matter swiftly in arbitration.”
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