Bakkt Investors Face Crucial Deadline to Lead Fraud Lawsuit Amid Revenue Fallout

The securities fraud lawsuit against Bakkt Holdings (NYSE: BKKT) has reached a pivotal moment. Investors who purchased the company’s shares between March 25, 2024, and March 17, 2025, now have until June 2, 2025, to seek appointment as lead plaintiff in a federal class action. The case hinges on allegations that Bakkt misled investors about its revenue stability, hiding a dangerous reliance on a single client. Here’s why the outcome could reshape investor recovery—and why timing matters.

A Fragile Foundation: The Case Against Bakkt

At the heart of the lawsuit is Bakkt’s alleged deception about its revenue streams. According to filings, the company falsely portrayed its crypto services revenue as “stable and diversified” while deriving 74% of crypto services revenue from Webull Pay LLC in late 2024. Worse, 98% of total revenue came from crypto services, making Bakkt extraordinarily vulnerable to client departures.

The unraveling began on March 17, 2025, when Bakkt disclosed that Webull would terminate its contract by June 14, 2025. Simultaneously, Bank of America announced it would end a key loyalty services agreement by April 22, 2025. Together, these losses would slash Bakkt’s revenue by an estimated 73%, triggering a stock collapse.

The Legal Landscape: Firms Compete for Investor Trust

Multiple law firms are vying to represent investors, each emphasizing their track record in securities litigation:
- Rosen Law Firm: Noted for a $1.4 billion settlement against Alibaba in 2020 and a #1 ranking in securities settlements (2017).
- Faruqi & Faruqi: Recovered over $438 million for investors in 2019 alone, with a focus on corporate fraud.
- Pomerantz LLP: A pioneer in shareholder rights cases, handling landmark cases like Enron and WorldCom.
- Schall Law Firm: Specializes in high-stakes class actions, including cases against Tesla and Boeing.

Investors must choose counsel wisely, as lead plaintiff status dictates litigation strategy. However, even “absent class members” can benefit from a settlement without direct involvement—provided the case succeeds.

Why Act Now? The Deadline’s Hidden Risks

The June 2 deadline isn’t just a formality. Lead plaintiffs must demonstrate the largest financial loss, giving large institutional investors an edge. However, retail investors holding significant shares should also act swiftly. Delaying could mean losing influence over the lawsuit’s direction, including settlement negotiations.

The stakes are high: Bakkt’s stock lost $3.50 per share on March 18, 2025, alone. If the court certifies the class, eligible investors could recover a portion of their losses.

Conclusion: A Crossroads for Shareholders

The Bakkt case exemplifies the perils of overreliance on key clients—a lesson for investors in all sectors. With 74% of crypto revenue tied to Webull, Bakkt’s disclosures exposed a critical flaw in its business model. The lawsuit’s success will depend on proving that these misrepresentations artificially inflated the stock price, violating Sections 10(b) and 20(a) of the Securities Exchange Act.

For investors, the path forward is clear: Act before June 2 to secure a seat at the table. Even if losses are modest, collective action could pressure Bakkt into a meaningful settlement. With law firms citing recoveries of hundreds of millions in past cases, the potential for compensation is tangible—but only for those who act in time.

The clock is ticking. For Bakkt shareholders, this is more than a lawsuit—it’s a chance to hold accountability and reclaim value from a fractured strategy.