Bakkt Holdings, Inc. (BKKT) Had Defective Financial Controls Requiring the Company to Restate its Financials
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Bakkt Holdings, Inc. (NYSE: BKKT, BKKTWS) f/k/a VPC Impact Acquisition Holdings (NASDAQ: VIHAU, VIH, VIHAW) securities: (i) between March 31, 2021 and November 19, 2021; and/or (ii) pursuant to the Offering Documents issued in connection with the business combination completed on October 15, 2021. The complaint asserts violations of the Securities Exchange Act of 1934.
According to the complaint, Bakkt was formerly known as VPC Impact Acquisition Holdings and operated as a special purpose acquisition company. On October 15, 2021, Bakkt and Legacy Bakkt completed a business combination. Bakkt changed its name to Bakkt Holdings Inc. and began operating a digital asset platform that enables consumers to buy, sell, convert, and spend digital assets. However, the Offering Documents were negligently prepared. Specifically, the Offering Documents and defendants failed to disclose that the Company had defective financial controls and as such, there were errors in its financial statements related to the miscalculation of certain shares issued prior to the business combination. The Company downplayed the scope and severity of these issues and overstated its remediation of its defective financial controls.
On November 22, 2021, just a month after assuring investors it had remediated its defective financial controls, Bakkt disclosed it would have to restate certain of its previously-issued financial statements because of errors related to the misclassification of certain shares issued prior to the business combination. On this news, shares of Bakkt fell $2.70 per share, or 13.69%, to close at $17.02 per share on November 22, 2021. At the time the complaint was filed, Bakkt’s Class A common stock was trading between $4.00 to $5.00 per share, trading below its initial value from the business combination.
Next Steps: If you acquired shares of Bakkt Holdings, Inc. (BKKT) between March 31, 2021 and November 19, 2021, you have until June 20, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.