A recent court decision has brought a consumer lawsuit against Coinbase back to life due to a minor mistake, even though the court agreed with the previous ruling to dismiss the case.

The new ruling mostly agreed with the earlier decision by a federal court to dismiss the case, stating that the lower court's actions were justified and that the plaintiffs' complaints lacked substance. The court also criticized the claims as being too repetitive and lacking detail.

The legal team at Coinbase, led by Paul Grewal, responded to the latest court ruling on April 5, emphasizing that crypto exchanges like Coinbase cannot be held responsible for trading activities done by users due to contractual agreements.

The plaintiffs in the case initially tried to adjust their complaint against Coinbase by excluding references to the company's user agreement in an attempt to strengthen their arguments against Coinbase under Section 29(b) of the Exchange Act.

Although the court upheld many parts of the dismissal, it decided to reinstate the case due to a clerical error made by the district court in handling the case initially. The mistake involved using the wrong date when referring to Coinbase's user agreement, causing confusion for all parties involved in the legal dispute.

Coinbase asserts that the correct user agreement from December 2021 was significant to the case, whereas the plaintiffs argue that no version of the agreement is essential since they did not rely on any specific contract in their claims.

Back in 2021, the plaintiffs claimed that Coinbase's actions regarding 79 different digital assets violated the law because Coinbase did not register these transactions with the Securities and Exchange Commission (SEC).