BigBear.ai Investors Urged to Act as Class Action Alleges Financial Misstatements and Stock Drop

BigBear.ai Investors Have Limited Time to Join Class Action Lawsuit

The Portnoy Law Firm has announced a class action lawsuit representing investors who purchased securities of BigBear.ai Holdings, Inc. (NYSE: BBAI) between March 31, 2022, and March 25, 2025. Investors affected by this may file a lead plaintiff motion by June 10, 2025.

Investors interested in learning more can contact attorney Lesley F. Portnoy at no cost via phone at 310-692-8883 or email lesley@portnoylaw.com. The law firm also offers a complimentary case evaluation to discuss potential claims for recovering losses.

Background on BigBear.ai and the Class Action

BigBear.ai specializes in artificial intelligence-powered decision intelligence solutions. In June 2021, the company merged with GigCapital4, Inc., a special purpose acquisition company (SPAC), and issued $200 million in unsecured convertible notes due December 15, 2026. These notes can convert into equity under certain conditions.

The lawsuit alleges that during the class period, BigBear.ai made false or misleading statements and failed to disclose key information. Specifically, the company is accused of inadequate accounting policies for complex transactions, leading to incorrect treatment of the 2026 Convertible Notes under accounting standards ASC 815-15 and ASC 815-40.

Accounting Errors and Financial Statement Restatements

• BigBear.ai incorrectly applied a derivative scope exception, failing to bifurcate the conversion option embedded in the notes.
• This misapplication led to misstated financial statements, which are likely to require restatement.
• The errors caused delays and increased expenses related to filings with the U.S. Securities and Exchange Commission (SEC).

On March 18, 2025, BigBear.ai announced that certain financial statements dating back to fiscal year 2021 should no longer be relied upon and that restatements were necessary due to material accounting errors concerning the convertible notes. This disclosure caused the company's stock price to drop nearly 15%.

Further, on March 25, 2025, the company filed its 2024 Form 10-K, confirming the misclassification of the conversion options and acknowledging a material weakness in internal controls over financial reporting. Following this news, the stock price declined by more than 9%.

Investor Options and Contact Information

Investors who purchased BigBear.ai securities during the class period are encouraged to review their legal options promptly. The Portnoy Law Firm represents investors in claims related to corporate misconduct and has a track record of recovering billions for clients.

To discuss potential claims or submit transaction information, investors can visit the Portnoy Law Firm’s official website or contact attorney Lesley F. Portnoy directly:

• Phone: 310-692-8883
• Email: lesley@portnoylaw.com

This is a critical opportunity for BigBear.ai investors to protect their rights and explore recovery options.