LOS ANGELES, June 16, 2022 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming June 20, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired: (a) Bakkt Holdings, Inc. f/k/a VPC Impact Acquisition Holdings (“Bakkt” or the “Company”) (NYSE: BKKT) securities between March 31, 2021 and November 19, 2021, inclusive (the “Class Period”); and/or (b) Bakkt Class A common stock pursuant and/or traceable to the Offering Documents issued in connection with the business combination completed on or about October 15, 2021 (the “Business Combination”).
If you suffered a loss on your Bakkt investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/bakkt-holdings-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On or about October 15, 2021, VPC Impact Acquisition Holdings (“VIH”), a special purpose acquisition company, completed a business combination with Bakkt Holdings, LLC (“Legacy Bakkt”), and the combined entity was renamed Bakkt Holdings, Inc.
On May 17, 2021, Bakkt – then operating as VIH – notified the SEC of its inability to timely file its quarterly report because “the Company reevaluated the accounting treatment of its public warrants and private placement warrants” and “is currently determining the extent of the SEC Statement’s impact on its financial statements[.]”
On this news, the Company’s stock fell $0.13, or 1.3%, to close at $10.18 per share on May 18, 2021, thereby injuring investors.
Then, on October 13, 2021, the Company revealed that it had previously failed to properly account for the classification of its Class A ordinary shares and “adjust[ed] . . . the initial carrying value of the Class A ordinary shares subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A ordinary shares.” As a result, additional paid-in capital was reduced to 0, accumulated deficit ballooned from $4.86 million to $29.25 million, and total shareholders’ equity swung to a deficit of $29.25 million.
On this news, the Company’s stock fell $0.47, or 4.7%, to close at $9.46 per share on October 14, 2021, thereby injuring investors further.
Then, on November 22, 2021, Bakkt disclosed that its management had re-evaluated the accounting classification of the Class A ordinary shares and had “identified errors in the historical financial statements of VIH . . . related to the misclassification . . . of the Class A Ordinary Shares prior to the [Business Combination].” Specifically, the Company determined that it would restate its consolidated financial statements for fiscal year 2020 and the quarterly periods in fiscal 2021.
On this news, Bakkt’s stock fell $2.70, or 13.7%, to close at $17.02 per share on November 22, 2021, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had defective financial controls; (2) as a result, there were errors in the Company's financial statements related to the misclassification of certain shares issued prior to the Business Combination; (3) accordingly, the Company would need to restate certain of its financial statements; (4) the Company downplayed the true scope and severity of these issues; (5) the Company overstated its remediation of its defective financial controls; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you purchased or otherwise acquired Bakkt securities during the Class Period, you may move the Court no later than June 20, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com
