1. Bakkt facing a class action lawsuit for misleading statements. 2. Termination of Webull agreement constitutes 74% of crypto services revenue. 3. Bank of America ends contract, affecting 17% of loyalty services revenue. 4. Projected revenue loss estimated at 73% due to client cancellations. 5. Stock dropped by 27.28% to $9.33 after lawsuit announcement.
The loss of key partners like Webull and Bank of America severely impacts revenue, similar to past cases where partner losses led to significant stock declines. For example, companies reliant on single revenue streams have faced similar fates, showing investor mistrust when projections fall short.
This lawsuit directly challenges Bakkt's business operations, posing a major risk to its revenue streams and investor confidence. The potential drop in revenue structures is critical for current and future stock performance.
Immediate revenue declines and investor sentiment are negatively impacted. Historically, such announcements have led to rapid and pronounced stock price reactions, as seen during similar lawsuits and client losses in tech sectors.
NEW YORK, April 10, 2025 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP, a distinguished law firm with over 125 years of history, announces that a securities class action lawsuit has been filed on behalf of all persons or entities who purchased or otherwise acquired Bakkt Holdings, Inc. (Bakkt or the Company) (NYSE: BKKT) securities between March 25, 2024 and March 17, 2025, inclusive (the Class Period).
If you are an investor who bought or otherwise acquired Bakkt securities during the Class Period, you have until June 2, 2025, to ask the Court to appoint you as Lead Plaintiff for the class.
PLEASE CLICK HERE TO JOIN THE CASE AND SUBMIT CONTACT INFORMATION
The filed Complaint alleges that on March 17, 2025, after the market close, the Company disclosed that Webull Pay LLC ("Webull") was terminating its commercial agreement with the Company, effective June 14, 2025. The Company revealed that in the prior nine months ended September 30, 2024, and the full year ended December 31, 2023, Webull made up 74% of Bakkt's crypto services revenue. In that same period, the Company derived 98% of its revenue from crypto services. The Company also disclosed that Bank of America was terminating its loyalty services contract with the Company, effective April 22, 2025. The Company revealed Bank of America made up 17% of its loyalty services revenue in the prior nine months ended September 30, 2024. These customer cancellations will collectively result in a 73% loss in top line revenue.
On this news, the Company's stock price fell $3.50 per share, or 27.28%, to close at $9.33 per share on March 18, 2025.
This illustrious firm, founded in 1888, is steadfast in their pursuit of justice for investors who have suffered financial harm due to these misrepresented statements. The law firm brings to the fore over 125 years of legal expertise in securities litigation and has a proven track record of protecting the rights of investors.
We encourage all investors who have been affected or have information that will assist in our investigation, to contact Wolf Haldenstein Adler Freeman & Herz LLP.
Firm Website: Wolf Haldenstein Adler Freeman & Herz LLP
SOURCE Wolf Haldenstein Adler Freeman & Herz LLP