Bakkt Faces Investor Lawsuit Over Alleged Misleading Statements

According to BlockBeats, U.S. cryptocurrency custody and trading platform Bakkt is facing a class-action lawsuit from investors, accusing the company of making false or misleading statements by not adequately disclosing its heavy reliance on key clients like Webull for revenue. The lawsuit, led by investor Guy Serge A. Franklin, was filed on April 2 in the Southern District of New York federal court, seeking a jury trial. The plaintiffs claim that between 2023 and 2024, Webull accounted for 74% of Bakkt's cryptocurrency service revenue, while Bank of America contributed 17% of its loyalty service revenue in the first three quarters of 2024. The termination of partnerships with these companies is expected to result in a 73% drop in overall company revenue. The lawsuit also names former CEO Gavin Michael, current CEO Andrew Main, and interim CFO Karen Alexander as defendants. Investors allege that Bakkt violated U.S. securities laws by failing to disclose the risks associated with the termination of contracts with key clients, leading to significant financial losses.