Bird Global, Inc. (BRDS) Has a Material Weakness in its Internal Control Over Financial Reporting Related to its Business Systems
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Bird Global, Inc. (NYSE: BRDS) securities between May 14, 2022 and November 14, 2022, for violations of the Securities Exchange Act of 1934. Bird Global is purportedly a micromobility company engaged in delivering electric transportation solutions for short distances.
According to the complaint, Bird Global combined with Switchback II Corporation, a special purpose acquisition company, and began trading on the NYSE on November 5, 2021.
During the relevant period, defendants failed to disclose that: (1) Bird was improperly recording Sharing Revenue for certain trips by its customers where collection was not probable; (2) as such, Bird overstated its Sharing Revenue for the relevant quarters and fiscal year during the Class Period; (3) Bird failed to disclose that its internal controls were not effective as they relate to calculating Sharing Revenue recognition; and (4) as a result, Bird would need to restate its previously disclosed Sharing Revenue.
On November 14, 2022, Bird announced it would restate its consolidated financial statements for certain periods due to issues concerning the recognition of Sharing Revenue and that certain statements should no longer be relied upon. On this news, Bird’s share price fell $0.069 per share, or over 15%, to close at $0.364 per share on November 14, 2022.
What Now: Shareholders who purchased shares of Bird Global, Inc. between May 14, 2022 and November 14, 2022, must file their papers to be appointed lead plaintiff for the class by January 14, 2023. 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.