SAN FRANCISCO, Sept. 03, 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 provider of space-based data services, announced that its accounting errors are more extensive than previously disclosed. On August 27, the company revealed that virtually all of its previously reported financial statements for 2022 and 2023 would need to be restated due to improperly recognized revenues for pre-space mission activity.
This revelation marks a substantial escalation from the company's initial announcement on August 14, when Spire announced that it would not timely file its Q2 2024 quarterly report as previously planned. The company said then it was 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.”
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.
This news sent the price of Spire shares about 33% lower on August 15, 2024.
But on August 27, 2024, Spire disclosed the accounting errors were more extensive than initially revealed. The company: (1) admitted that it improperly recognized revenues for pre-space mission activity; (2) said its financial statements for the quarters and nine months ended September 30, 2023 and 2022, the quarters and six months ended June 30, 2023 and 2022, and for the years ended December 31, 2023 and 2022 should no longer be relied on; and (3) also said that it would restate its financial statements for these affected periods.
Spire’s most recent disclosure comes on the heels of an investor class action filed earlier this month. The complaint, filed on behalf of investors in Spire between March 6, 2024 and August 14, 2024, inclusive, 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.
This news drove the price of Spire shares down over 5% during intraday trading on August 28, 2024.
Spire’s admitted accounting errors has prompted shareholder rights firm Hagens Berman to commence an investigation into whether the company and its executives violated U.S. securities laws.
“We are looking into whether Spire’s most recent disclosures justify extending the alleged class period,” 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
