BigBear.ai Faces Securities Fraud Lawsuit After Financial Misstatements Trigger Stock Decline

Bleichmar Fonti & Auld LLP Files Lawsuit Against BigBear.ai Holdings, Inc.

On May 25, 2025, Bleichmar Fonti & Auld LLP, a leading securities law firm, announced the filing of a lawsuit against BigBear.ai Holdings, Inc. (NYSE: BBAI) and certain senior executives. The suit alleges violations of federal securities laws related to the company’s financial disclosures. Investors who purchased BigBear.ai securities are encouraged to seek additional information and consider joining the case before the June 10, 2025 deadline to be appointed as lead plaintiff.

The complaint, filed in the U.S. District Court for the Eastern District of Virginia under the case Priewe v. BigBear.ai Holdings, Inc., et al., No. 25-cv-00623, asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Details of the Allegations Against BigBear.ai

BigBear.ai provides AI-driven technology solutions that support sectors such as national security and supply chain management by converting complex data into actionable insights. The company went public through a SPAC merger with GigCapital4 Merger Sub Corporation and GigCapital4, Inc. After the merger, BigBear.ai issued $200 million in unsecured convertible notes due in December 2026.

The lawsuit claims that BigBear.ai improperly accounted for these convertible notes, leading to misstated financial statements from fiscal year 2021 onward. This misrepresentation affected key financial metrics disclosed to investors.

Market Reaction and Financial Restatements

On March 18, 2025, BigBear.ai announced a delay in filing its 2024 10-K report, revealing that financial statements since 2021 were unreliable and would be restated. This disclosure caused the stock price to drop approximately 15%, falling from $3.49 to $2.97 per share.

One week later, on March 25, BigBear.ai filed the restated 2024 10-K, acknowledging a material weakness in internal controls over financial reporting and adjusting the valuation of the 2026 convertible notes to their fair value as of December 7, 2021, with remeasurement at each reporting date. Following this filing, the stock price declined by another 9%, closing at $3.19 per share on March 26.

Investor Options and Legal Support

If you invested in BigBear.ai, you may have legal recourse. Bleichmar Fonti & Auld LLP encourages affected investors to submit their information promptly. Representation is offered on a contingency fee basis, meaning no upfront costs or court fees are required from shareholders. Any legal fees will be subject to court approval.

To learn more or submit your information, visit BFA’s BigBear.ai case page or contact Ross Shikowitz directly at ross@bfalaw.com or 212-789-3619.

About Bleichmar Fonti & Auld LLP

Bleichmar Fonti & Auld LLP specializes in securities class actions and shareholder litigation. The firm was named among the Top 5 plaintiff law firms by ISS SCAS in 2023. Its attorneys have earned recognition as Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thomson Reuters.

Recent successes include recovering over $900 million from Tesla, Inc.’s Board of Directors and $420 million from Teva Pharmaceutical Industries Ltd. For more information about the firm and its attorneys, visit BFA’s official website.