Spire Global (SPIR) Secures Debt Waiver Amid Accounting Scandal and Investor Suit- Hagens Berman
SAN FRANCISCO, Sept. 19, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges Spire Global, Inc. (NYSE: SPIR) investors who suffered substantial losses to submit your losses now.
Class Period: Mar. 6, 2024 – Aug. 14, 2024
Lead Plaintiff Deadline: Oct. 21, 2024
Visit: www.hbsslaw.com/investor-fraud/SPIR
Contact the Firm Now: SPIR@hbsslaw.com
844-916-0895
Class Action Lawsuit Against Spire Global, Inc. (SPIR):
Spire Global, the beleaguered space data provider, has managed to stave off financial distress by securing a waiver and amendment to its debt obligations with Blue Torch Capital. The agreement, reached on Aug. 27, 2024, provides immediate relief from leverage ratios in exchange for a hefty price tag.
The company will now be required to pay an amendment fee of 3.5% of the outstanding term loan principal and it had to make a $10 million principal payment by August 31. This comes at a time when Spire’s cash reserves are already stretched thin, with only $46 million in cash and equivalents as of June 30.
The debt relief comes amidst a growing accounting scandal that has rocked the company. Spire recently admitted that virtually all of its previously reported financial statements for 2022 and 2023 would need to be restated due to improperly recognized revenues for pre-space mission activity. This revelation marks a significant escalation from the company’s initial announcement in early August, when it announced that it would not timely file its Q2 2024 quarterly report. The company said then it was in the process of reviewing its accounting practices and procedures with respect to revenue recognition related to certain contracts in its “Space as a Service” business. The company further explained that “[t]he re-evaluation relates to the potential existence of embedded leases of identifiable assets in the Contracts and the related recognition of revenue for pre-space mission activities.”
The accounting irregularities have not only led to financial covenant violations but have also triggered a class-action lawsuit against the company. Investors are alleging that Spire misrepresented and failed to disclose the true nature of certain contracts and the related revenue recognition.
Shareholder rights firm Hagens Berman is now investigating whether the company and its executives violated U.S. securities laws.
“Spire Global’s recent admissions of accounting irregularities raise serious concerns about the company’s corporate governance and financial practices,” said Reed Kathrein, the Hagens Berman partner leading the investigation. “We are looking into whether Spire’s recent disclosures and stock performance warrant lengthening the alleged class period.”
If you invested in Spire Global and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Spire Global case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Spire Global should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SPIR@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
