AI news ·
Bleichmar Fonti & Auld LLP Files Securities Fraud Lawsuit Against BigBear.ai Following Financial Restatements and Stock Decline
Bleichmar Fonti & Auld LLP sued BigBear.ai for alleged securities law violations over misstated financials. Investors have until June 10, 2025, to join the case.
Bleichmar Fonti & Auld LLP Files Lawsuit Against BigBear.ai Holdings, Inc.
On May 3, 2025, the securities law firm Bleichmar Fonti & Auld LLP announced a lawsuit against BigBear.ai Holdings, Inc. (NYSE: BBAI) and several of its senior executives. The suit alleges violations of federal securities laws related to the company’s financial reporting and accounting practices.
Investors who purchased BigBear.ai securities have until June 10, 2025, to seek appointment as lead plaintiff in the case. The complaint is filed under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and is pending in the U.S. District Court for the Eastern District of Virginia, case number 25-cv-00623.
Background: Why Is BigBear.ai Facing Securities Fraud Allegations?
BigBear.ai provides AI-driven technology solutions, focusing on national security, supply chain management, and digital identity, among other areas. The company went public through a SPAC merger with GigCapital4 entities and subsequently issued $200 million in unsecured convertible notes due in 2026.
The lawsuit claims that BigBear.ai improperly accounted for these 2026 Convertible Notes, leading to misstated financial statements across multiple reporting periods. This improper accounting allegedly misled investors about the company’s financial health.
Stock Impact Following Financial Disclosures
On March 18, 2025, BigBear.ai delayed the filing of its 2024 10-K and disclosed that financial statements since 2021 would be restated. This announcement caused the stock price to fall approximately 15%, from $3.49 to $2.97 per share.
One week later, on March 25, BigBear.ai filed the restated 2024 10-K, which reflected adjustments including the fair value measurement of the 2026 Convertible Notes and identified a material weakness in internal financial controls. Following this filing, the stock declined an additional 9%, closing at $3.19 on March 26.
Options for Investors
If you invested in BigBear.ai, you may have legal options. Bleichmar Fonti & Auld LLP is accepting submissions from potential class members. Representation is offered on a contingency fee basis, meaning there are no upfront costs, and shareholders are not liable for court expenses. Any fees require court approval.
Submit your information or learn more by visiting BFA Law. You can also contact Ross Shikowitz directly at ross@bfalaw.com or by phone at 212-789-3619.
About Bleichmar Fonti & Auld LLP
Bleichmar Fonti & Auld LLP is a prominent international law firm specializing in securities class actions and shareholder litigation. Recognized among the Top 5 plaintiff law firms by ISS SCAS in 2023, its attorneys have received accolades such as Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters.
Recent major recoveries include over $900 million from Tesla, Inc.’s Board of Directors and $420 million from Teva Pharmaceutical Industries Ltd. For more information about the firm, visit BFA Law.