Shares of BigBear AI (BBAI) have been in free fall since February, but the selloff could deepen after New York law firms filed class-action lawsuits against the company over alleged securities violations.
Attorneys at Faruqi & Faruqi and Levi & Korsinsky are urging investors to come forward by June 10.
Those who lost more than $50,000 on BBAI stock between March 2022 and March 2025 may be eligible to join the suit, which alleges the company misled shareholders about its accounting practices and convertible notes offering.
The complaint claims BigBear issued false statements that resulted in inaccurate financial filings, raising concerns that it may not meet future reporting deadlines.
Concerns first emerged on March 18, when BigBear delayed a key regulatory filing and warned that its financial statements dating back to 2021 should “no longer be relied upon.”
The stock plunged 15% on the news. A week later, on March 25, it dropped another 9% after the company filed revised financials.
Accounting controversy meets macro headwinds
The timing couldn’t have been worse.
BigBear’s internal missteps come as markets are reeling from President Trump’s escalating trade war, delivering a one-two punch that sent the stock crashing 74% from its February high.
BBAI is down more than 43% this year, far underperforming the Nasdaq Composite and broader indexes. The company’s market cap has shrunk to under $800 million, down from nearly $2.3 billion at its peak.
The accounting blowup has derailed what had been a promising run.
In early March — just weeks before the controversy — BigBear reported fourth-quarter revenue of $43.8 million, up 8% from the prior year.
CEO Kevin McAleenan projected full-year 2025 revenue could reach $180 million, citing a growing contract pipeline and maturing AI product suite.
All eyes are now on May 1 when BigBear will report its earnings. It’s the first real look at whether the accounting fallout has hurt the company’s underlying business.
So far, analysts haven’t released any revenue or earnings forecasts for the quarter.
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