Why does Bakkt Holdings face a Class Action Lawsuit as Brager Eagel and Squire, P.C. announced?

In the announcement, the law firm also asked investors who also feel about filing complaints against the Company can register as a plaintiff in the court

A Stockholder rights law firm has national recognition, Brager Eagel, and Squire, P.C. has announced that a lawsuit of a class action has been filed against the Company by the name Bakkt Holding Inc. in the United States District Court of New York Eastern District. The law firm has filed the lawsuit on behalf of all the entities and people who purchased or acquired traceable securities of Bakkt to the IPO of 15th October 2021 or between two dates from 31st March 2021 to 19th November 2021, including both the dates. In case more investors who want to join will have until 20th June 2022 to apply at the court to be appointed as a lead petitioner. 

The Company Bakkt Holdings, previously known as VPC Impact Acquisition Holdings, operated as a special purpose acquisition company (SPAC), also known as a blank check company. These companies form to act as the development stage company having no specific business plan or purpose of fulfilling and indicating their business plan to get merged or acquired by an unidentified company or group of companies, entities, or persons. 

On 11th January 2021, the Company and Legacy Bakkt announced to enter into a definitive agreement for a business combination, which would result in the Company becoming a company that would be traded publicly with an enterprise value of about $2.1 billion.

After or on 15th October 2021, the Company and Legacy Bakkt have completed the pursuant of Business Combination to the Offering Documents and after which the Company’s name changed to Bakkt Holdings, INC. Then the Company started operating as a digital asset platform that allowed consumers to buy, sell, spend and convert digital assets. Everything with the Company seems to go well until it’s filing of quarterly reports at the SEC starts getting defaulted. 

For instance, on 17th May 2021, the Company, which was still operating as VIH, notified Security and Exchange Commission that it could not file its quarterly report on time for the quarter that ended on 31st March 2021. The Company then advised specifically, and after a result of a statement issued by the SEC, that the Company let the accounting treatment evaluated again of belonging to its public and private placement warrants, and for now, it’s determining the extent of the impact made by SEC’s statements on the financial statements. 

Also Read: Adam White, Bakkt’s President Pulls Himself Out of Company

This similar incident happened again and again. Every time it happened, the result was reflected in the share price of Bakkt, which fell every other day whenever news came out about the failure of resorts by the Company to the SEC. Lastly, on 22nd November 2021, the Company’s stock price fell almost by 13.69% and closed trading at $17.02. Till the time the complaint was filed, the trading price of Bakkt Holdings’ stock was around $4 to $5 and had been consistently falling since then. 

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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