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A collective of investors associated with cryptocurrency custody and trading entity Bakkt Holdings has initiated a class-action lawsuit claiming deceptive or ambiguous statements and a dismissal of crucial information.<\/p>\n
Lead plaintiff Guy Serge A. Franklin has insisted on a jury trial as part of the grievance against Bakkt, senior advisor and former CEO Gavin Michael, CEO and president Andrew Main, and interim chief financial officer Karen Alexander, as indicated in a filing dated April 2 in the US District Court for the Southern District of New York.<\/p>\n
The investor group asserts damages resulting from breaches of US securities statutes and an absence of clarity regarding its arrangements with clients: Webull and Bank of America (BoA).<\/p>\n April 2 lawsuit against Bakkt and its executives. Source: PACER<\/em><\/p>\n<\/figcaption><\/figure>\n The departure of Bank of America and Webull is projected to cause \u201ca 73% downturn in top line revenue\u201d since the two companies constitute a substantial portion of its service revenue, the investors allege in the lawsuit. The filing indicated that Webull represented 74% of Bakkt\u2019s crypto services revenue for most of 2023 and 2024, whereas Bank of America accounted for 17% of its loyalty services revenue from January to September 2024.<\/p>\n Related: <\/strong><\/em>Bakkt appoints new co-CEO amid renewed focus on crypto offerings<\/strong><\/em><\/a><\/p>\n Bakkt revealed on March 17 that Bank of America and Webull did not plan to extend their agreements<\/a> with the company, set to conclude in 2025. This announcement likely contributed to a drop of over 27% in the firm\u2019s share price within the subsequent 24 hours. The investors claim Bakkt \u201cmisrepresented the reliability and\/or variety of its crypto services revenue\u201d and neglected to reveal that this revenue was \u201csignificantly reliant\u201d on Webull\u2019s contract.<\/p>\n \u201cDue to the Defendants\u2019 wrongful actions and omissions, along with the sharp decline in the market value of the Company\u2019s securities, Plaintiff and other Class members have endured considerable losses and damages,\u201d stated the suit.<\/p>\n Other law firms reported<\/a> that they were scrutinizing Bakkt for securities law breaches, implying that further class-action lawsuits might be forthcoming. Cointelegraph reached out to Bakkt for remarks on the lawsuit but did not receive an answer by the time of publication.<\/p>\n Bakkt\u2019s stock price soared by roughly 162% in November 2024 following reports indicating that then-US President-elect Donald Trump\u2019s media organization<\/a> was contemplating purchasing the firm. As of April 2025, no official announcement regarding a deal has been made by either company.<\/p>\nPrices influenced by Trump Media news<\/h2>\n