I have found this not so good news for Coinbase, there is not much information about it, however the lawsuit accuses Coinbase of not disclosing the risks inherent in TerraUSD and of misleading the plaintiffs and the class to believe that they were buying a "reserve backed stablecoin".
I doubt they will win this case against Coinbase, but I am considering this exchange to be very high risk now, ever since they said they could take away users funds to save themselves from going bust.
Everyone knows that dealing with shitcoins is even more risky, and I could say the same for all stable coins including Tether, USDC and all others.
I think that TerraUSD was algorithm based stable coin that makes it highly unstable and tied to it's based coin.