{"id":126490,"date":"2025-04-04T18:15:46","date_gmt":"2025-04-04T18:15:46","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126490"},"modified":"2025-04-04T18:15:46","modified_gmt":"2025-04-04T18:15:46","slug":"bakkt-investors-file-class-action-lawsuit-after-loss-of-webull-boa-contracts","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126490","title":{"rendered":"Bakkt investors file class-action lawsuit after loss of Webull, BoA contracts"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsA group of investors with cryptocurrency custody and trading firm Bakkt Holdings filed a class-action lawsuit alleging false or misleading statements and a failure to disclose certain information.<br \/>\nLead plaintiff Guy Serge A. Franklin called for a jury trial as part of a complaint against Bakkt, senior adviser and former CEO Gavin Michael, CEO and president Andrew Main, and interim chief financial officer Karen Alexander, according to an April 2 filing in the US District Court for the Southern District of New York.<br \/>\nThe group of investors allege damages as the result of violations of US securites laws and a lack of transparency surrounding its agreement with clients: Webull and Bank of America (BoA).<br \/>\nApril 2 complaint against Bakkt and its executives. Source: PACERThe loss of Bank of America and Webull will result \u201cin a 73% loss in top line revenue\u201d due to the two firms making up a significant percentage of its services revenue, the investor group alleges in the lawsuit. The filing stated Webull made up 74% of Bakkt\u2019s crypto services revenue through most of 2023 and 2024, and Bank of America made up 17% of its loyalty services revenue from January to September 2024.<br \/>\nRelated: Bakkt names new co-CEO amid re-focus on crypto offerings<br \/>\nBakkt disclosed on March 17 that Bank of America and Webull did not intend to renew their agreements with the firm ending in 2025. The announcement likely contributed to the company\u2019s share price falling more than 27% in the following 24 hours. The investors allege Bakkt \u201cmisrepresented the stability and\/or diversity of its crypto services revenue\u201d and failed to disclose that this revenue was \u201csubstantially dependent\u201d on Webull\u2019s contract.<br \/>\n\u201cAs a result of Defendants\u2019 wrongful acts and omissions, and the precipitous decline in the market value of the Company\u2019s securities, Plaintiff and other Class members have suffered significant losses and damages,\u201d said the suit.<br \/>\nOther law offices said they were investigating Bakkt for securities law violations, suggesting additional class-action lawsuits may be in the works. Cointelegraph contacted Bakkt for a comment on the lawsuit but did not receive a response at the time of publication.<br \/>\nPrices affected by Trump Media reports<br \/>\nBakkt\u2019s share price surged roughly 162% in November 2024 after reports suggested that then-US President-elect Donald Trump\u2019s media company was considering acquiring the firm. As of April 2025, neither company has officially announced a deal.<br \/>\nShares in Bakkt (BKKT) were $8.15 at the time of publication, having fallen more than 36% in the previous 30 days.<br \/>\nMagazine: Meet lawyer Max Burwick \u2014 \u2018The ambulance chaser of crypto\u2019<a href=\"https:\/\/cointelegraph.com\/news\/bakkt-class-action-lawsuit-webull?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsA group of investors with cryptocurrency custody and trading firm Bakkt Holdings filed a class-action lawsuit alleging false or misleading statements and a failure to disclose certain information.&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126490"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126490"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126490\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126490"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}