BigBear.ai Holdings, Inc. Investors: Please contact the Portnoy Law Firm to recover your losses; June 10, 2025 Deadline to file Lead Plaintiff Motion

Investors can contact the law firm at no cost to learn more about recovering their losses

LOS ANGELES, June 04, 2025 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises BigBear.ai Holdings, Inc. ("BigBear " or the "Company") (NYSE: BBAI) investors of a class action representing investors that bought securities between March 31, 2022 and March 25, 2025, inclusive (the "Class Period"). BigBear investors have until June 10, 2025 to file a lead plaintiff motion.

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

BigBear.ai provides artificial intelligence-powered decision intelligence solutions. According to the complaint, in June 2021, BigBear.ai entered into a merger agreement with GigCapital4, Inc., a special purpose acquisition company (SPAC), along with GigCapital4 Merger Sub Corporation and BBAI Ultimate Holdings. Upon completion of the merger, BigBear.ai issued $200 million in unsecured convertible notes—debt instruments that may be converted into equity at a future date—set to mature on December 15, 2026 (“2026 Convertible Notes”).

The class action lawsuit alleges that, during the Class Period, defendants made false and misleading statements and/or failed to disclose material information. BigBear.ai allegedly maintained inadequate accounting review policies related to the reporting and disclosure of non-routine, unusual, or complex transactions. As a result, the company incorrectly concluded that the conversion option embedded in the 2026 Convertible Notes qualified for a derivative scope exception under Accounting Standards Codification (ASC) 815-40, and failed to bifurcate the conversion option as required by ASC 815-15. This led to improper accounting treatment of the 2026 Convertible Notes and misstatements in several of the company’s previously issued financial statements. These statements were inaccurate and would likely require restatement. In addition, correcting the errors would require significant time and expense, increasing the likelihood of delayed financial filings with the U.S. Securities and Exchange Commission.

On March 18, 2025, BigBear.ai disclosed that certain financial statements dating back to fiscal year 2021 should no longer be relied upon and would be restated. The company identified a material error related to its accounting for the 2026 Convertible Notes. Following this announcement, the price of BigBear.ai stock fell nearly 15%, according to the complaint.

On March 25, 2025, BigBear.ai filed its 2024 Form 10-K, revealing that the conversion option within the 2026 Notes had been incorrectly deemed eligible for a scope exception from bifurcation under ASC 815-15. The company further disclosed that the 2026 Notes contained adjustments to the conversion rate that violated the “fixed-for-fixed” criteria described in ASC 815-40. As a result, the financial statements were restated to reflect the issuance of the conversion option at fair value as of December 7, 2021, and subsequent remeasurement at each reporting date.

The company also acknowledged a material weakness in its internal controls over financial reporting, specifically its failure to consistently apply its technical accounting review policies. This included misapplication of interpretations requiring significant judgment or subject to differing interpretations, particularly with respect to complex or non-routine transactions. On this news, BigBear.ai’s stock price declined more than 9%, according to the complaint.

Please visit our website to review more information and submit your transaction information.

The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com

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