Scott+Scott Attorneys at Law LLP is investigating whether certain directors and officers of GigCapital4, Inc. (“GigCapital4”) (NASDAQ: GIG); n/k/a BigBear.ai Holdings, Inc. (“BigBear”) (NYSE: BBAI) breached their fiduciary duties to GigCapital4’s shareholders. If you were a GigCapital4 shareholder, you may contact attorney Joe Pettigrew for additional information toll-free at 844-818-6982, or firstname.lastname@example.org.
More specifically, Scott+Scott is investigating whether GigCapital4’s directors or executive officers breached their fiduciary duties or otherwise acted in bad faith in connection with GigCapital4’s December 7, 2021 merger with BigBear.ai Holdings, LLC (the “Merger”).
On December 3, 2021, GigCapital4 shareholders approved the Merger. Since then, BigBear has significantly underperformed the financial projections and guidance provided to GigCapital4 stockholders before the Merger. Before the Merger, GigCapital4’s executives and officers told stockholders that BigBear was projected to have revenues of $173 million in 2021 and revenues of $277 million in 2022, and that BigBear would be profitable in terms of adjusted EBITDA in 2021 and 2022.
On March 17, 2022, less than four months after the Merger, BigBear reported its 2021 annual operating results, which included only $146 million in revenue—almost a 16% miss. BigBear further reduced revenue guidance for 2022 to $175-205 million. This suggests a possible 36.8% miss to the 2022 projections used to value BigBear in the Merger. Meanwhile, in the first three quarters of 2022, BigBear has reported negative 14.6 million in adjusted EBITDA.
BigBear’s stock now trades at a fraction of its value before the Merger, reaching as low $0.58 per share on December 30, 2022.
What You Can Do
If you were a GigCapital4 shareholder who has witnessed a decrease in the value of your investment since the Merger, you may have legal claims against GigCapital4’s directors and officers. If you wish to discuss our investigation or have questions about this alert or your legal rights, please contact attorney Joe Pettigrew toll-free at 844-818-6982, or email@example.com.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio.
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