Bakkt Holdings, Inc. f/k/a VPC Impact Acquisition Holdings

Investigation
11/22/2021

Initial Lawsuit
04/21/2022

Lawsuit Progression
06/21/2022

Investigation

Continous Holding
March 31, 2021 to November 19, 2021
Proposed Claim
Securities Violation

Investors investigation focused on statements made prior to and during the merger with the special purpose acquisition (SPAC) VPC Impact Acquisition Holdings (traded “VIHAU”, “VIH”, and “VIHAW”) regarding the misclassification of certain shares, defective internal controls & errors in financial statements leading to the restatement of financials.

Main Event

Financial Restatement - Defective Controls

11/22/2021

SEC Filing

Bakkt discloses that its management “has re-evaluated the application of ASC 480-10-S99-3A to the accounting classification of the Class A ordinary shares . . . of VPC Acquisition Impact Holdings (“VIH”)” prior to the completion of the business combination “and has identified errors in the historical financial statements of VIH . . . the Company has determined that it is appropriate to restate certain of VIH’s condensed consolidated financial statements.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$17.02	$19.72	$-2.7	-13.69%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 04/21/2022

This is a federal securities class action on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired:
(a) Bakkt securities between March 31, 2021 and November 19, 2021, both dates inclusive; and/or
(b) Bakkt Class A common stock pursuant and/or traceable to the registration statement and prospectus issued in connection with the business combination between Bakkt Holdings, Inc. f/k/a VPC Impact Acquisition Holdings and Bakkt Holdings, LLC completed on or about October 15, 2021.

Filing Date
04/21/2022
Class Period
03/31/2021 to 11/19/2021
Transgression
Securities Violation
Filing Firms
Pomerantz LLP
Case Title
Poirier v. Bakkt Holdings, Inc. f/k/a VPC Impact Acquisition Holdings et al
Docket Number
1:22-cv-02283
Court
New York Eastern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) the company had defective financial controls;
(ii) as a result, there were errors in the company’s financial statements related to the misclassification of certain shares issued prior to the business combination;
(iii) accordingly, the company would need to restate certain of its financial statements;
(iv) the company downplayed the true scope and severity of these issues;
(v) the company overstated its remediation of its defective financial controls; and
(vi) as a result, the offering documents and defendants’ public statements throughout the class period were materially false and/or misleading and failed to state information required to be stated therein.