The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Bakkt Holdings, Inc. f/k/a VPC Impact Acquisition Holdings (BKKT) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired: (a) Bakkt Holdings, Inc. f/k/a VPC Impact Acquisition Holdings (“Bakkt” or the “Company”) (NYSE: BKKT) securities between March 31, 2021 and November 19, 2021, inclusive (the “Class Period”); and/or (b) Bakkt Class A common stock pursuant and/or traceable to the Offering Documents issued in connection with the business combination completed on or about October 15, 2021 (the “Business Combination”). Bakkt investors have until June 20, 2022, to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On or about October 15, 2021, VPC Impact Acquisition Holdings (“VIH”), a special purpose acquisition company, completed a business combination with Bakkt Holdings, LLC (“Legacy Bakkt”), and the combined entity was renamed Bakkt Holdings, Inc.

On May 17, 2021, Bakkt – then operating as VIH – notified the SEC of its inability to timely file its quarterly report because “the Company reevaluated the accounting treatment of its public warrants and private placement warrants” and “is currently determining the extent of the SEC Statement’s impact on its financial statements[.]”

On this news, the Company’s stock fell $0.13, or 1.3%, to close at $10.18 per share on May 18, 2021, thereby injuring investors.

Then, on October 13, 2021, the Company revealed that it had previously failed to properly account for the classification of its Class A ordinary shares and “adjust[ed] . . . the initial carrying value of the Class A ordinary shares subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A ordinary shares.” As a result, additional paid-in capital was reduced to 0, accumulated deficit ballooned from $4.86 million to $29.25 million, and total shareholders’ equity swung to a deficit of $29.25 million.

On this news, the Company’s stock fell $0.47, or 4.7%, to close at $9.46 per share on October 14, 2021, thereby injuring investors further.

Then, on November 22, 2021, Bakkt disclosed that its management had re-evaluated the accounting classification of the Class A ordinary shares and had “identified errors in the historical financial statements of VIH . . . related to the misclassification . . . of the Class A Ordinary Shares prior to the [Business Combination].” Specifically, the Company determined that it would restate its consolidated financial statements for fiscal year 2020 and the quarterly periods in fiscal 2021.

On this news, Bakkt’s stock fell $2.70, or 13.7%, to close at $17.02 per share on November 22, 2021, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, 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, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had defective financial controls; (2) 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; (3) accordingly, the Company would need to restate certain of its financial statements; (4) the Company downplayed the true scope and severity of these issues; (5) the Company overstated its remediation of its defective financial controls; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Bakkt securities during the Class Period, you may move the Court no later than June 20, 2022, to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Bakkt securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Bakkt Holdings, Inc. f/k/a VPC Impact Acquisition Holdings (BKKT) Investors