Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against BigBear.ai Holdings, Inc. (BBAI)

NEW YORK, April 14, 2025 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia on behalf of all persons or entities who purchased the securities of BigBear.ai Holdings, Inc. (“BigBear” or the “Company”) (NYSE: BBAI) between March 31, 2022 and March 25, 2025, both dates inclusive (the “Class Period”).

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. The Complaint alleges specifically, that Defendants made false and/or misleading statements and/or failed to disclose that: (i) BigBear maintained deficient accounting review policies related to the reporting and disclosure of certain non-routine, unusual, or complex transactions; (ii) as a result, the Company incorrectly determined that the conversion option within the 2026 Convertible Notes qualified for the derivative scope exception under ASC 815 40 and failed to bifurcate the conversion option as required by ASC 815-15; (iii) accordingly, BigBear had improperly accounted for the 2026 Convertible Notes; (iv) the foregoing error caused BigBear to misstate various items in several of the Company’s previously issued financial statements; (v) as a result, these financial statements were inaccurate and would likely need to be restated; (vi) BigBear would require extra time and expense to correct the inaccurate financial statements, thereby increasing the risk that the Company would be unable to timely file certain financial reports with the SEC; and (vii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

According to the Complaint on March 18, 2025, BigBear disclosed in a filing with the SEC that certain of the Company’s financial statements since fiscal year 2021 should no longer be relied upon and would be restated. The Complaint alleges specifically, that management identified a material error in the previously reported financial statements related to the accounting treatment of the Company’s 2026 Convertible Notes. The Complaint continues to allege that in addition, BigBear revealed that, as a result of the foregoing, the Company would be unable to timely file its Annual Report for 2024 (the “2024 10-K”) “without unreasonable effort or expense.”

The Complaint alleges that on this news, BigBear’s stock price fell $0.52 per share, or 14.9%, to close at $2.97 per share on March 18, 2025.

Investors who purchased or otherwise acquired shares of BigBear should contact the Firm prior to the June 10, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

Please visit our website at http://www.gme-law.com for more information about the firm.

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