Class Action Lawsuit Filed Against Crowdfunding Campaign

CrowdfundBeat News Wire

SAN FRANCISCO, CA – Kronenberger Rosenfeld, LLP, a San Francisco-based law firm, filed a class action lawsuit alleging that Coin, Inc. (“Coin”) received millions of dollars from consumers through a crowdfunding campaign for a product the company knew could never work as advertised. The lawsuit demands a trial by jury and seeks monetary damages against Coin for false advertising, misrepresentation and breach of contract.

The device at issue, called a “Coin,” is a thin, plastic, credit-card-shaped digital storage system with a magnetic stripe similar to that on a credit or debit card. It was advertised as a card consolidation device that would hold all of a consumer’s credit and debit card information in one card, so that a consumer would only need to carry “one card.”


The Coin device was marketed and sold to the public in what has been described as one of the most immediately successful crowdfunding campaigns ever. The campaign consisted of a single video entitled, “One Coin for All of Your Cards,” which promoted the Coin device as a solution for consumers who disliked carrying multiple cards in their wallets. The lawsuit alleges that the central message in Coin’s video was that the Coin device allowed consumers to carry just one card, and leave all their other cards at home. In addition to the video, this one card message was echoed in multiple press releases, other marketing efforts, and statements by the Coin CEO to the media.

The complaint alleges that after receiving their Coin devices, consumers discovered that the devices failed to work at terminals anywhere from 15 to more than 40 percent of the time, resulting in consumers having to carry their actual credit cards despite owning a Coin device.

The complaint also alleges that the Coin device’s security feature, which ostensibly alerted a consumer when their Coin device was out of range of their smart phone, failed to work properly as consumers were not alerted.

“Our complaint alleges that Coin knowingly marketed a product that it knew could not work the way they said it would,” said lead attorney Karl Kronenberger. “The complaint further alleges that Coin knew the statements in its crowdfunding video were false, but proceeded to line their pockets anyway, leaving consumers stuck with a device that does not work the way Coin promised.”


BloombergCouples Desperate For Children Turn to Crowdfunding FertilityBloombergCrowdfunding has become a popular mechanism for many couples who can't afford the high costs of IVF, or adoption and surrogacy. “It's not an easy thing to share publicly,” says Crystal Barrett, 33 [...]

MarketWatchWhy a crowdfunding site is giving out $10000 scholarshipsMarketWatchCrowdfunding site GoFundMe announced Thursday that it will award $10,000 to 10 students with pages on their site that fundraise for education. The award is part of a contest the site held throughout Septemb [...]

MottoYou'll Never Believe How Couples Are Paying for IVFMottoMore and more couples are turning to crowdfunding to fund costly in vitro fertilization (IVF) treatments, Bloomberg reports. The cost of IVF treatments, a popular choice for women struggling with infertility issues, ave [...]

WestwordProgressive-Rock Band Marillion Pioneered CrowdfundingWestwordThat was the beginning of crowdfunding for us — and for every band, really.” When it came time for the recording and release of the followup to the 1999 record, Kelly and the band realized that one of [...]

Huffington PostReal Estate Crowdfunding's Pathway of ChangeHuffington Post“Crowdfunding is just the Internet,” stated Attorney Mark Roderick as he opened last month's RealCap Chicago. RealCap is an annual conference that joins crowdfunding leaders and innovators to propel th [...]

CoinTelegraphCrowdfunding vs. ICO: Experts Question Legitimacy and Guarantees ...CoinTelegraphThe simplistic idea behind crowdfunding a non-existent software or system has become a trend in the cryptocurrency industry, but most Bitcoin experts are highly ...and more » [...]

Crowdfund Expansion - Seedrs Moves Into Europe With EU Financial Services PassportForbes“We want break down national barriers and geographic barriers,” says Jeff Lyn, co-founder and CEO of UK crowdfunding platform, Seedrs. “Why limit investment to within fifty miles of your house?” On [...]

ForbesVenture Crowdfunding Revisited: An Update with NIN VenturesForbesI am about to head off to attend the Global Crowfunding Convention (GCC) 6 in Las Vegas. It will be my fourth time attending. The crowdfunding industry has grown from $16 billion in 2014 to $34 billion in 2015, and [...]

Crowdfund InsiderTitle III Crowdfunding Might Not Be What Many ExpectedCrowdfund InsiderI have been immersed in the equity crowdfunding industry since late 2015 and have tried to collect as many different perspectives on the industry from as many experts as possible. And while it is h [...]

PC MagazineHow to Crowdfund Without Going Broke and Irking Your BackersPC MagazineTo say crowdfunding is on the rise would be an understatement. Crowdfunding—raising small amounts of money from a large number of people in order to launch a product, service, or project of some sort—is [...]

CFB Finance

Press Release

CrowdFund Beat News

Hello @CrowdFundBeat's 17296 followers - thank you so much for following! Wishing you all a happy Friday! >>

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |