Faruqi & Faruqi, LLP Investigates BigBear.ai for Potential Investor Claims

Ongoing Investigation of BigBear.ai by Faruqi & Faruqi

Faruqi & Faruqi, LLP, a prominent law firm specializing in securities litigation, has commenced an investigation into potential claims against BigBear.ai Holdings, Inc. This follows a series of troubling developments regarding the company's financial practices and disclosures. Investors who suffered losses exceeding $50,000 between March 31, 2022, and March 25, 2025, are encouraged to assess their legal options.

Overview of Allegations

The complaint alleges that BigBear.ai and its executives have violated federal securities laws by making several misleading statements and failing to disclose critical information regarding their financial reporting. Key points of concern raised in the investigation include:
1. Inadequate Accounting Policies: The company allegedly maintained deficient accounting procedures, particularly regarding the reporting and disclosure of non-routine and complex transactions.
2. Misapplication of Accounting Standards: BigBear mistakenly determined that the conversion option within its 2026 Convertible Notes qualified for an exception in accounting standards, leading to improper financial statement preparations.
3. Need for Restatement of Financial Reports: Given the errors in financial reporting, BigBear will likely need to restate several previously issued financial statements, undermining investor confidence.

Impact on Stock Performance

The financial turmoil became evident on March 18, 2025, when BigBear delayed the filing of its 2024 Form 10-K. This significant delay was coupled with an announcement that previous financial statements dating back to fiscal year 2021 were unreliable, resulting in a share price plunge of approximately 15%. Follow-up developments revealed that the company would have to restate its consolidated financial statements, leading to an additional decline of about 9% in the stock price on March 26, 2025.

Call to Action for Investors

Faruqi & Faruqi, LLP is actively seeking to represent investors who have been adversely affected by BigBear’s actions. Individuals interested in potentially participating in a federal securities class action can take direct action by contacting Faruqi partner, Josh Wilson. The role of lead plaintiff will be taken by the investor with the most significant interest in the case, providing a crucial opportunity to hold BigBear accountable for its actions.

Conclusion

Investors with insights about BigBear's challenges—be they whistleblowers, former employees, or shareholders—are urged to come forward. The firm's investigative efforts aim to uncover the truth behind BigBear's financial practices and provide a pathway for recovery to affected shareholders. Through their decades of experience, Faruqi & Faruqi have successfully secured hundreds of millions for investors and remain committed to addressing wrongful actions in the securities marketplace.

For ongoing updates and more information regarding the BigBear.ai class action, potential claimants can visit Faruqi Law's official webpage or directly reach out via phone.