Spire (US:SPIR) GlobeNewswire News Roomยท2024-08-27 07:03Core Viewpoint - A class action lawsuit has been filed against Spire Global, Inc. for allegedly misleading investors regarding revenue recognition related to its Space Services contracts [1][2]. Allegations - The complaint alleges that Spire Global failed to disclose embedded leases of identifiable assets and pre-space mission activities for certain Space Services contracts [2] - It is claimed that the company lacked effective internal controls regarding revenue recognition for these contracts, leading to an overstatement of revenue [2]. Financial Impact - On August 14, 2024, Spire Global announced it would not be able to timely file its Q2 2024 financial report due to a review of its accounting practices related to revenue recognition [3] - The company identified that the contracts under reevaluation resulted in recognized revenue of $10 to $15 million annually, with potential impacts on gross profit [3]. - Following this announcement, the company's share price dropped by $3.41, or 33.56%, closing at $6.75 per share on August 15, 2024 [3]. Class Action Participation - Shareholders interested in serving as lead plaintiffs must submit their applications by October 21, 2024 [4]. - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4]. About Robbins LLP - Robbins LLP is a law firm that actively litigates securities class actions and has a history of recovering over $1 billion for shareholders since its inception in 2002 [6].