| COMPANY |
Spire Global, Inc. |
| COURT |
United States District Court for the Eastern District of Virginia |
| CASE NUMBER |
24-cv-01458 |
| JUDGE |
The Hon. Michael Stefan Nachmanoff |
| CLASS PERIOD |
May 11, 2022 through August 27, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS OCTOBER 21, 2024.
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Case Background:
On August 14, 2024, after the market closed, Spire Global announced it would be unable to timely file its second quarter 2024 financial report. Spire Global indicated that it was “reviewing its accounting practices and procedures with respect to revenue recognition related to certain [Space Services] contracts,” and that the “re-evaluation relates to the potential existence of embedded leases of identifiable assets in the [c]ontracts and the related recognition of revenue for pre-space mission activities,” as well as “related internal control matters.” Spire Global further added that, depending on the results of the review, it “may be required to restate or revise its previously issued financial statements,” and that at the time of this announcement, the “type of [c]ontracts that the Company has identified for re-evaluation resulted in recognized revenue of $10 to $15 million on an annual basis.” On this news, the price of Spire Global Class A common stock declined $3.41 per share, or approximately 33.56%, from a close of $10.16 per share on August 14, 2024, to close at $6.75 per share on August 15, 2024.
On August 27, 2024, after the market closed, Spire Global announced that investors should no longer rely on its previously issued financial statements beginning with its financial statements for the quarter ended March 31, 2022, attributed to the need “to remove certain pre-space mission activity revenue,” and “record that revenue over the period in which data is delivered.” Furthermore, Spire Global revealed that it would need to restate its financial statements for: (1) the quarters and nine months ended September 30, 2022 and 2023, (2) the quarters and six months ended June 30, 2022 and 2023, (3) the quarters ended March 31, 2022, 2023 and 2024, and (4) the years ended December 31, 2022 and 2023. On this news, the price of Spire Global Class A common stock declined $0.12 per share, or approximately 1.47%, from a close of $8.19 per share on August 27, 2024, to close at $8.07 per share on August 28, 2024.
The complaint alleges that, during 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, Defendants misrepresented and/or failed to disclose that: (1) Spire Global overstated revenue for certain Space Services contracts; (2) Spire Global lacked effective internal controls regarding revenue recognition for these contracts; (3) Spire Global would have to restate its financial statements to remove certain previously recorded pre-space mission activity revenue from the period in which pre-space mission activities were performed under certain contracts, and instead, record that revenue over the period in which data is delivered; and (4) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.