Law Offices of Howard G. Smith announces an investigation on behalf of Bakkt Holdings, Inc. f/k/a VPC Impact Acquisition Holdings (“Bakkt” or the “Company”) (NYSE: BKKT) investors concerning the Company’s possible violations of federal securities laws.
On or about October 15, 2021, VPC Impact Acquisition Holdings (“VIH”), a special purpose acquisition company, completed a business combination with Bakkt Holdings, LLC (“Legacy Bakkt”), and the combined entity was renamed Bakkt Holdings, Inc. (the “Business Combination”).
On May 17, 2021, Bakkt – then operating as VIH – notified the SEC of its inability to timely file its quarterly report because “the Company reevaluated the accounting treatment of its public warrants and private placement warrants” and “is currently determining the extent of the SEC Statement’s impact on its financial statements[.]”
On this news, the Company’s stock fell $0.13, or 1.3%, to close at $10.18 per share on May 18, 2021, thereby injuring investors.
Then, on October 13, 2021, the Company revealed that it had previously failed to properly account for the classification of its Class A ordinary shares and “adjust[ed] . . . the initial carrying value of the Class A ordinary shares subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A ordinary shares.” As a result, additional paid-in capital was reduced to 0, accumulated deficit ballooned from $4.86 million to $29.25 million, and total shareholders’ equity swung to a deficit of $29.25 million.
On this news, the Company’s stock fell $0.47, or 4.7%, to close at $9.46 per share on October 14, 2021, thereby injuring investors further.
Then, on November 22, 2021, Bakkt disclosed that its management had re-evaluated the accounting classification of the Class A ordinary shares and had “identified errors in the historical financial statements of VIH . . . related to the misclassification . . . of the Class A Ordinary Shares prior to the [Business Combination].” Specifically, the Company determined that it would restate its consolidated financial statements for fiscal year 2020 and the quarterly periods in fiscal 2021.
On this news, Bakkt’s stock fell $2.70, or 13.7%, to close at $17.02 per share on November 22, 2021, thereby injuring investors further.
If you purchased Bakkt securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220427006011/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
