Investor Deadline Approaching: Legal Action Underway Against BigBear.ai Holdings, Inc.
Faruqi & Faruqi, LLP, a prominent national securities law firm, is investigating claims on behalf of investors in BigBear.ai Holdings, Inc. (NYSE: BBAI). Investors have until June 10, 2025, to seek the role of lead plaintiff in a federal securities class action filed against the company. This deadline is critical for those looking to actively participate in the litigation process.
Faruqi & Faruqi, with offices across New York, Pennsylvania, California, and Georgia, has secured hundreds of millions of dollars for investors since 1995. Their investigation centers on allegations that BigBear.ai and its executives violated federal securities laws by issuing false or misleading statements and failing to disclose significant financial issues.
Key Allegations in the Complaint
- BigBear.ai maintained inadequate accounting review policies concerning the reporting of complex transactions.
- The company incorrectly determined that the conversion option within its 2026 Convertible Notes qualified for the derivative scope exception under ASC 815-40, failing to bifurcate the conversion option as required by ASC 815-15.
- As a result, BigBear.ai improperly accounted for the 2026 Convertible Notes.
- This misaccounting led to misstated items in multiple previously issued financial statements.
- These financial statements were inaccurate and are expected to require restatement.
- The company will need additional time and resources to correct these inaccuracies, increasing the risk of delayed SEC filings.
- Consequently, BigBear.ai’s public statements during this period were materially false and misleading.
Timeline of Key Events Affecting Investors
On March 18, 2025, BigBear.ai delayed filing its 2024 10-K, announcing that financial statements since fiscal year 2021 should no longer be relied upon and would be restated. Following this announcement, the stock price dropped approximately 15%, falling from $3.49 to $2.97 per share.
Subsequently, on March 25, 2025, the company filed its restated 2024 10-K, acknowledging the need to reflect the fair value issuance and remeasurement of the 2026 Notes Conversion Option. The filing also revealed a material weakness in internal controls over financial reporting. This news caused another stock price decline of about 9%, from $3.51 to $3.19 per share.
What Investors Should Know About the Lead Plaintiff Role
The court-appointed lead plaintiff is the investor with the largest financial interest who can adequately represent the class. This individual oversees the litigation on behalf of all class members. Investors can choose to apply for this role through their own counsel or remain passive class members. Importantly, choosing not to serve as lead plaintiff does not affect an investor's eligibility for any potential recovery.
Contact Information and Further Action
Faruqi & Faruqi encourages anyone with information regarding BigBear.ai’s conduct—including whistleblowers, former employees, and shareholders—to get in touch. To learn more about the class action or to discuss potential involvement, visit www.faruqilaw.com/BBAI or call Faruqi & Faruqi partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310).
This case highlights the importance of staying vigilant about corporate financial disclosures and understanding the impact of accounting errors on investment decisions.
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