BigBear.ai Faces Legal Turmoil: Investors Urged to Act Before Deadline

BigBear.ai Holdings, Inc. (NYSE: BBAI), an AI-driven technology firm specializing in national security and supply chain solutions, is now the center of a securities class action lawsuit alleging widespread financial misstatements and accounting fraud. Investors who purchased shares between March 31, 2022, and March 25, 2025, are urged to take action before the June 10, 2025, deadline to seek compensation for losses linked to the company’s alleged misconduct.

The Lawsuit: A Breakdown of Allegations

The lawsuit, Priewe v. BigBear.ai Holdings, Inc., accuses the company and its executives of violating federal securities laws through misleading statements and omissions. Key allegations include:

1. Improper Accounting of Convertible Notes: BigBear.ai allegedly misclassified the conversion option in its $200 million 2026 Convertible Notes, failing to comply with accounting standards (ASC 815-40 and 815-15). This error led to financial misstatements dating back to fiscal 2021.
2. Deficient Internal Controls: The company admitted to a material weakness in its internal controls over financial reporting, stemming from inconsistent accounting policies for complex transactions.
3. Delayed SEC Filings: On March 18, 2025, BigBear.ai delayed filing its 2024 Form 10-K, revealing restatements of prior financial statements. This disclosure triggered a 15% stock plunge, from $3.49 to $2.97 per share.

By March 25, 2025, the restated 10-K was filed, further exposing the accounting flaws. This led to a second stock decline of 9%, dropping the share price to $3.19.

Why This Matters for Investors

The lawsuits argue that investors were misled about the company’s financial health and compliance with accounting rules. During the Class Period, BigBear.ai’s stock traded as high as $6.50 per share, but the subsequent disclosures caused a steep decline, erasing over 50% of its value.

The legal action, led by firms like The Gross Law Firm and Robbins Geller Rudman & Dowd LLP, seeks to recover losses for investors who bought shares during this time. The claims are rooted in Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, which prohibit fraud and hold controlling parties accountable.

The Critical June 10 Deadline

Investors holding BBAI shares during the Class Period have until June 10, 2025, to join the lawsuit. Those seeking to serve as lead plaintiff must file a motion by this date to oversee the litigation. However, all class members are eligible to share in any recovery without direct involvement.

Historical Context: Can Investors Win?

Class action lawsuits against companies for accounting fraud often hinge on proving material misstatements and the resulting harm to investors. For example, in the Tesla securities case handled by Bleichmar Fonti & Auld LLP, plaintiffs recovered $900 million after proving executives misled investors about production targets.

While outcomes vary, the combination of admitted accounting errors, delayed filings, and significant stock declines in BBAI’s case strengthens the plaintiffs’ position.

What’s Next for BigBear.ai?

The company now faces heightened scrutiny over its financial practices and internal controls. The lawsuit could also impact its ability to secure financing or partnerships, given the reputational damage.

Conclusion: Act Now or Risk Losing Out

The evidence against BigBear.ai—including improper accounting, delayed disclosures, and a 50% stock collapse—paints a clear picture of investor harm. With the June 10 deadline looming, eligible shareholders must act promptly to protect their rights.

Legal experts emphasize that class actions typically proceed on a contingency fee basis, meaning there’s no upfront cost to participate. Given the precedent of recoveries in similar cases and the severity of BBAI’s admitted errors, investors who held during the Class Period have a strong case to seek compensation.

As the saying goes, “Justice delayed is justice denied”—but for BigBear.ai shareholders, timely action could mean the difference between recovery and regret.

Investors should consult with legal counsel or visit the law firm websites listed in the lawsuit notices to register and stay informed.