I apologize, and wish there was something more we could do.
That's a little disingenuous... there IS something more that they could do... they could extract the private key and move the LTC. However, they are making a conscious decision to NOT do this.
OP, you should make a watching wallet with this address... if those LTC EVER move... you need to contact coinbase and demand the coins... as they have obviously gone ahead and done exactly what they have told you they
can't won't do.