Bakkt faces a collective lawsuit from investors

BlockBeats news, on April 5th, the American encryption custody and trading platform Bakkt was collectively sued by investors, accusing it of making false or misleading statements without adequately disclosing its revenue’s heavy reliance on key clients such as Webull. The lawsuit was led by investor Guy Serge A. Franklin and filed on April 2nd in the Southern District Federal Court of New York, seeking a jury trial. The plaintiffs claim that Webull contributed 74% of Bakkt’s encryption service revenue from 2023 to 2024, while Bank of America accounted for 17% of its loyalty service revenue in the first three quarters of 2024. The termination of cooperation between the two companies will lead to a 73% drop in the company’s overall revenue. The defendants also include the company’s former CEO Gavin Michael, current CEO Andrew Main, and interim CFO Karen Alexander. Investors believe that Bakkt failed to timely disclose the risks of contract termination with key clients, violating U.S. securities law, resulting in significant losses.