PHILADELPHIA, April 16, 2025 /PRNewswire/ -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against BigBear.ai Holdings, Inc. ("BigBear" or the "Company") (NYSE: BBAI) on behalf of purchasers of BigBear securities between March 31, 2022 through March 25, 2025, inclusive (the "Class Period").Investor Deadline: Investors who purchased or acquired BigBear securities during the Class Period may, no later than JUNE 10, 2025, seek to be appointed as a lead plaintiff rep ...

Core Viewpoint - A class action lawsuit has been filed against BigBear.ai Holdings, Inc. for failing to disclose deficiencies in its accounting practices, leading to the need for restatement of financial statements [1][2][3] Group 1: Allegations and Financial Misstatements - The lawsuit alleges that BigBear maintained inadequate accounting review policies for unusual or complex transactions [2] - It is claimed that BigBear incorrectly accounted for the conversion option within the 2026 Convertible Notes, failing to bifurcate it as required [2] - The errors in accounting led to misstatements in previously issued financial statements, necessitating restatement [2][3] Group 2: Impact on Stock and Reporting - On March 18, 2025, BigBear disclosed that certain financial statements since fiscal year 2021 were unreliable and would be restated, causing a significant drop in stock price by $0.52, or 14.9%, closing at $2.97 per share [3] - The company indicated it would be unable to file its Annual Report for 2024 without unreasonable effort or expense due to the identified material error [3] Group 3: Class Action Participation - Shareholders wishing to serve as lead plaintiffs in the class action must file their papers by June 10, 2025, but participation is not required to be eligible for recovery [4] - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [5]

Core Viewpoint - A class action lawsuit has been filed against BigBear.ai Holdings, Inc. for alleged accounting errors and misstatements in financial reporting during the Class Period from March 31, 2022, to March 25, 2025 [1][6] Group 1: Lawsuit Details - The lawsuit was initiated in the U.S. District Court for the Eastern District of Virginia, with investors having until June 10, 2025, to apply as lead plaintiffs [1] - The complaint alleges that BigBear failed to disclose deficiencies in its accounting review policies, leading to improper accounting for the 2026 Convertible Notes [6] Group 2: Financial Reporting Issues - On March 18, 2025, BigBear announced that certain financial statements since fiscal year 2021 should no longer be relied upon due to a material error related to the accounting treatment of the 2026 Convertible Notes [4] - The 2024 10-K filing revealed that the conversion option within the 2026 Notes was incorrectly deemed eligible for a scope exception, necessitating restatement of financial statements [5] - The restatement affected various financial metrics, including accumulated deficits, derivative liabilities, and net loss [5] Group 3: Market Reaction - Following the announcement of the financial reporting issues, BigBear's share price fell from $3.49 to $2.97 on March 18, 2025, and from $3.51 to $3.19 on March 26, 2025 [4][5]

Core Viewpoint - BigBear.ai Holdings, Inc. has experienced a significant decline in stock price following disappointing earnings results, raising concerns about its future growth and profitability [1][2][17]. Financial Performance - Q4 2024 revenue increased by 8% year-over-year to $43.8 million, but fell short of analyst expectations of $53.84 million [2] - Full-year 2024 revenue was $158.24 million, a slight increase from $155.16 million in 2023, while the net loss widened to $257.1 million from $60.4 million in 2023, largely due to a $93.3 million non-cash charge [3] - The adjusted loss per share for Q4 was 43 cents, significantly worse than the expected 6-cent loss [2] - Q4 gross margin improved to 37.4% year-over-year, but SG&A costs rose to $22.2 million from $18.2 million year-over-year [3] Future Outlook - The projected full-year revenue range for 2025 is $160 million to $180 million, missing analyst consensus of approximately $193.9 million, indicating potential stagnation [5] - The company anticipates negative single-digit millions in adjusted EBITDA for 2025, suggesting no operational profitability expected in the near term [6] - BigBear.ai's guidance could be adversely affected by unforeseen events such as a U.S. government shutdown or shifts in national security spending priorities [7] External Factors - The company faces significant external headwinds, including a directive for the Department of Defense to identify $50 billion in budget cuts, which poses a direct threat to its revenue pipeline [8][9] - The broader macroeconomic environment remains challenging for growth-oriented technology stocks, particularly those that are unprofitable, contributing to a "risk-off" sentiment among investors [10] Insider Activity - Recent insider selling, particularly by major shareholders linked to AE Industrial Partners, has raised concerns about confidence in the company's short-term prospects, with sales generating approximately $36.7 million [12][13] - Total recent insider selling could be as high as $78 million, further indicating a lack of faith in the company's near-term outlook [13][14] Analyst Sentiment - Analyst downgrades and price target cuts have resulted in a lowered consensus rating of Moderate Buy, with an average price target now set at $5.33, despite a theoretical upside [15][16] - The negative analyst actions reflect reduced confidence and poor quantitative metrics for the company [16]

Core Viewpoint - A class action lawsuit has been filed against BigBear.ai Holdings, Inc. for allegedly making materially false and misleading statements regarding its business operations and financial reporting [1][3]. Summary by Relevant Sections Lawsuit Details - The lawsuit was filed in the United States District Court for the Eastern District of Virginia on behalf of all individuals and entities who purchased BigBear securities between March 31, 2022, and March 25, 2025 [1]. - Investors have until June 10, 2025, to apply to be appointed as lead plaintiff in the lawsuit [1]. Allegations Against BigBear - The lawsuit alleges that BigBear maintained deficient accounting review policies related to the reporting and disclosure of certain non-routine, unusual, or complex transactions [3]. - It is claimed that BigBear incorrectly determined that the conversion option within the 2026 Convertible Notes qualified for the derivative scope exception under ASC 815-40 and failed to bifurcate the conversion option as required by ASC 815-15 [3]. - As a result of these errors, BigBear allegedly misaccounted for the 2026 Convertible Notes, leading to inaccuracies in previously issued financial statements that may need to be restated [3]. - The company is said to require additional time and expense to correct these inaccuracies, increasing the risk of delays in filing financial reports with the SEC [3]. - Consequently, the public statements made by BigBear were claimed to be materially false and misleading throughout the relevant period [3].

Core Viewpoint - A securities class action lawsuit has been filed against BigBear.ai Holdings, Inc. for allegedly making materially false and misleading statements regarding its business and financial reporting during the class period from March 31, 2022, to March 25, 2025 [1] Group 1: Allegations of Misconduct - The complaint alleges that BigBear maintained deficient accounting review policies related to the reporting and disclosure of certain non-routine, unusual, or complex transactions [2] - It is claimed that BigBear incorrectly determined that the conversion option within the 2026 Convertible Notes qualified for the derivative scope exception under ASC 815 40 and failed to bifurcate the conversion option as required by ASC 815-15 [2] - The complaint states that these errors led to the misstatement of various items in previously issued financial statements, which would likely need to be restated [2] Group 2: Impact on Financial Statements - On March 18, 2025, BigBear disclosed that certain financial statements since fiscal year 2021 should no longer be relied upon and would be restated due to a material error in the accounting treatment of the 2026 Convertible Notes [3] - The company indicated that it would be unable to timely file its Annual Report for 2024 without unreasonable effort or expense [3] - Following this disclosure, BigBear's stock price fell by $0.52 per share, or 14.9%, closing at $2.97 per share on March 18, 2025 [3] Group 3: Investor Actions - Investors who purchased shares of BigBear are encouraged to contact the law firm Gainey McKenna & Egleston prior to the June 10, 2025 lead plaintiff motion deadline [4]

Core Viewpoint - A securities fraud lawsuit has been filed against BigBear.ai Holdings, Inc. and certain executives due to misleading financial statements and restatements of prior financial results [1][2]. Group 1: Company Financial Issues - On March 18, 2025, BigBear disclosed that certain financial statements since fiscal year 2021 should no longer be relied upon and would be restated due to a material error related to the accounting treatment of the 2026 Convertible Notes [2]. - The company indicated it would be unable to timely file its Annual Report for 2024 without unreasonable effort or expense [2]. Group 2: Investor Eligibility - Investors who purchased BigBear.ai common stock between March 31, 2022, and March 25, 2025, and have experienced a decline in their shares may be eligible to participate in the lawsuit [3]. Group 3: Legal Process and Actions - The deadline to seek appointment as lead plaintiff is June 10, 2025, and a class has not yet been certified [4]. - Investors who have lost money on their investment are encouraged to contact Block & Leviton for further information [4]. Group 4: Whistleblower Information - Individuals with non-public information about BigBear.ai are encouraged to assist in the investigation or file a report with the SEC under the whistleblower program, potentially receiving rewards of up to 30% of any successful recovery [5]. Group 5: Firm Background - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [6].

Company Performance - BigBear.ai Holdings, Inc. (BBAI) closed at $2.81, reflecting a -1.06% change from the previous day, underperforming the S&P 500's 1.81% gain [1] - Over the past month, shares have depreciated by 13.15%, compared to the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14% [1] Upcoming Financial Results - The upcoming earnings per share (EPS) for BigBear.ai is projected at -$0.06, which indicates a 72.73% increase from the same quarter last year [2] - Revenue is estimated to be $35.9 million, reflecting an 8.38% growth compared to the corresponding quarter of the prior year [2] Full Year Projections - For the full year, the Zacks Consensus Estimates project an EPS of -$0.21 and revenue of $167.2 million, representing changes of +80.91% and +5.67% from the prior year, respectively [3] Analyst Estimates - Recent changes to analyst estimates indicate a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks BigBear.ai at 4 (Sell) [6] Industry Context - The Computers - IT Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - BigBear.ai Holdings, Inc. (BBAI) has experienced a significant decline in stock performance recently, with a 13.2% drop over the past month, contrasting with the broader industry and sector trends [1][2] Financial Performance - The company reported a net loss of $108 million in Q4 2024, primarily due to non-cash charges related to derivative liabilities, despite achieving revenues of $43.8 million, an 8% year-over-year increase [4][5] - Operating expenses, particularly SG&A, rose sharply to $22.2 million from $18.2 million year-over-year, impacting operational efficiency and leading to a decrease in adjusted EBITDA to $2 million from $3.7 million [5][6] - The company forecasts negative single-digit millions in adjusted EBITDA for 2025, indicating ongoing financial pressures [6] Market Environment - BigBear.ai faces challenges in its core government markets, with delays and uncertainties around government contract funding due to fiscal caution and ongoing congressional resolutions [7] - The company operates in sectors closely tied to federal budgets, which adds to the uncertainty of its revenue streams [7] Growth Potential - Despite current challenges, BigBear.ai's backlog has increased significantly to $418 million from $168 million year-over-year, indicating potential future revenue [10] - The integration of Pangiam is expected to enhance the company's offerings in identity analytics and security, aligning with high-priority national interests [10][11] - The company has secured a 3.5-year, $13.2 million contract from the U.S. Department of Defense, suggesting a transition towards more stable growth [11] Strategic Partnerships - BigBear.ai has formed strategic collaborations with major tech companies like Amazon, Palantir, and Autodesk, which enhances its market position and validates its technology [12][13][14] - These partnerships reflect the increasing demand for BigBear.ai's solutions across both government and commercial sectors [14] Valuation and Outlook - BBAI is currently trading at a forward price/sales ratio of 4.74X, higher than its historical median but lower than the sector average [15] - The Zacks Consensus estimate for 2025 loss per share has widened to 21 cents, indicating a bearish trend [16][20] - Overall, while there are long-term growth prospects, the near-term outlook is concerning due to widening losses and financial instability [20]

Core Insights - The article discusses the investment landscape and the potential opportunities within the market, emphasizing the importance of thorough research and analysis before making investment decisions [1]. Group 1 - The article highlights the significance of understanding market trends and company fundamentals to identify potential investment opportunities [1]. - It mentions that investors should be cautious and conduct due diligence to mitigate risks associated with market volatility [1]. - The importance of diversification in an investment portfolio is underscored, suggesting that spreading investments across various sectors can help manage risk [1].