PANews reported on April 5 that according to Cointelegraph, a group of investors in cryptocurrency custody and trading company Bakkt Holdings filed a class action lawsuit, accusing it of false or misleading statements and failure to disclose certain information. According to documents filed with the U.S. District Court for the Southern District of New York on April 2, the investor group claimed that it suffered losses due to violations of U.S. securities laws and lack of transparency in agreements with clients Webull and Bank of America (BoA).
The investor group claimed in the lawsuit that losing Bank of America and Webull would result in a "73% loss in revenue." The filing said Webull accounted for 74% of Bakkt's crypto service revenue for most of 2023 and 2024, while Bank of America accounted for 17% of its loyalty service revenue between January and September 2024.
Bakkt disclosed on March 17 that Bank of America and Webull had no intention of renewing their agreement with the company, which expires in 2025. The announcement caused the company's stock price to fall more than 27% in the following 24 hours. Investors accused Bakkt of "misrepresenting the stability and/or diversity of its crypto service revenue" and failing to disclose that this revenue was "substantially dependent" on Webull's contract. "Plaintiffs and other class members have suffered substantial losses and damages as a result of the defendants' wrongful acts and omissions, and the sharp decline in the market value of the company's securities," the lawsuit states.
