BigBear.ai investors sue over alleged accounting misstatements.

Berger Montague PC filed a securities class action lawsuit against BigBear.ai Holdings, Inc. (NYSE: BBAI) on behalf of investors who purchased BigBear securities between March 31, 2022 and March 25, 2025. The lawsuit alleges that BigBear made false and misleading statements about its financial condition and business operations during the Class Period. Investors who purchased BigBear securities during the Class Period may seek to be appointed as a lead plaintiff representative by June 10, 2025.

Title: Berger Montague PC Files Securities Class Action Lawsuit Against BigBear.ai Holdings, Inc.

Berger Montague PC, a prominent securities law firm, has filed a securities class action lawsuit against BigBear.ai Holdings, Inc. (NYSE: BBAI) on behalf of investors who purchased BigBear securities between March 31, 2022 and March 25, 2025. The lawsuit alleges that BigBear made false and misleading statements about its financial condition and business operations during the Class Period.

Investors who purchased BigBear securities during the Class Period may seek to be appointed as a lead plaintiff representative by June 10, 2025. The complaint filed by Berger Montague PC alleges that BigBear failed to disclose significant accounting issues, including deficient accounting review policies and improper accounting for its 2026 Convertible Notes. These misstatements have led to a series of restatements of financial statements and a significant drop in the company's stock price.

BigBear.ai, headquartered in McLean, Virginia, is an AI-driven technology company offering national security, supply chain management, and digital identity and biometrics solutions. In June 2021, the company entered into a business combination with GigCapital4, Inc., a special purpose acquisition company. After the business combination was consummated on December 7, 2021, BigBear issued $200 million of convertible notes with a maturity date of December 15, 2026.

The complaint alleges that throughout the Class Period, BigBear maintained deficient accounting review policies and incorrectly determined that the conversion option within the 2026 Notes qualified for the derivative scope exception under Accounting Standards Codification (ASC) 815-40, failing to bifurcate the conversion option as required by ASC 815-15. This led to improper accounting for the 2026 Notes.

On March 18, 2025, BigBear disclosed that certain financial statements since fiscal year 2021 should no longer be relied upon and would be restated. The company's stock price fell by $0.52 per share, or 14.9%, to close at $2.97 per share on that day. On March 25, 2025, BigBear filed its 2024 10-K, disclosing that a conversion option embedded within the 2026 Notes was incorrectly deemed to be eligible for a scope exception from the bifurcation requirements of ASC 815-15. As a result, the Company's financial statements were restated. The company further disclosed a material weakness in its internal control over financial reporting.

Investors are advised to contact Berger Montague for more information or to learn their rights. The deadline for investors to seek appointment as a lead plaintiff is June 10, 2025. The lawsuit underscores the importance of rigorous accounting oversight and investor vigilance, especially in the technology sector.

References:
[1] https://www.prnewswire.com/news-releases/bigbearai-holdings-nyse-bbai-deadline-approaching-berger-montague-advises-investors-of-deadline-in-securities-fraud-lawsuit-302469199.html
[2] https://macholevante.com/news-en/186581/stunning-investor-shake-up-what-bigbear-ais-accounting-crisis-means-for-wall-street/