Spire (US:SPIR) GlobeNewswire News Roomยท2024-09-20 21:48Core Viewpoint - A class action lawsuit has been filed against Spire Global, Inc. for failing to disclose significant issues related to revenue recognition and internal controls during a specific period, leading to a substantial decline in share price [1][2][3]. Group 1: Lawsuit Details - The lawsuit was filed in the U.S. District Court for the Eastern District of Virginia on behalf of investors who acquired Spire securities from March 6, 2024, to August 14, 2024 [1]. - Investors have until October 21, 2024, to apply to be appointed as lead plaintiff in the lawsuit [1]. Group 2: Financial Impact - On August 14, 2024, Spire announced it could not timely file its Q2 2024 financial report due to a review of its accounting practices regarding revenue recognition, affecting contracts in its "Space as a Service" business [2]. - The company identified that the contracts under re-evaluation resulted in recognized revenue of $10 to $15 million annually, with potential impacts on gross profit [2]. - Following this announcement, Spire's share price dropped by $3.41, approximately 33.5%, from $10.16 to $6.75 per share [2]. Group 3: Allegations in the Lawsuit - The lawsuit alleges that Spire failed to disclose the existence of embedded leases and pre-space mission activities for certain Space Services contracts [3]. - It claims that Spire lacked effective internal controls regarding revenue recognition for these contracts [3]. - The lawsuit further alleges that these issues led to an overstatement of revenue for certain Space Services contracts [3].