SAN FRANCISCO, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Spire Global, Inc. (NYSE: SPIR) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.
Class Period: Mar. 6, 2024 – Aug. 14 2024
Lead Plaintiff Deadline: Oct. 21, 2024
Visit: www.hbsslaw.com/investor-fraud/SPIR
Contact the Firm Now: SPIR@hbsslaw.com
844-916-0895
Class Action Lawsuit Against Spire Global, Inc. (SPIR):
Spire, a global provider of space-based data, analytics and Space Services, is the target of an investor class action over the company’s assurances that its financial reports complied with applicable accounting rules and that its internal controls over financial reporting were sufficient.
The litigation challenges Spire’s financial reporting relating to certain Space Services contracts.
The complaint alleges that Spire misrepresented and failed to disclose that: (1) there were embedded leases of identifiable assets and pre-space mission activities for certain Space Services contracts; (2) the company lacked sufficient internal controls for revenue recognition for these contracts; and (3) as a result, the company overstated revenue for certain Space Services contracts.
Investors began to learn the truth on August 14, 2024, when Spire announced that it would not timely file its Q2 quarterly report as previously planned. The company said that it is in the process of reviewing its accounting practices and procedures with respect to revenue recognition related to certain contracts in its “Space as a Service” business. The company further explained that “[t]he re-evaluation relates to the potential existence of embedded leases of identifiable assets in the Contracts and the related recognition of revenue for pre-space mission activities.”
Spire also said that it may be required to restate previously filed financial statements and the type of contracts being re-evaluated resulted in recognized revenue of approximately $10 million to $15 million.
Further, Spire said that, based on preliminary information, it believes it may be in violation of the maximum debt to EBITDA leverage ratio financial covenant under its financing agreement with Blue Torch Finance. The company said it is attempting to secure waivers or amendments to the financing agreement but could give no assurances of success.
At the time of the complaint’s filing, Spire had not filed its quarterly report.
This news sent the price of Spire shares about 33% lower on August 15, 2024.
“We are looking into whether Spire Global may have misled investors about financial results and overall health,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Spire Global and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Spire Global case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Spire Global should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SPIR@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
