Bakkt, a cryptocurrency custodian company, is facing a class action lawsuit on suspicion of "false statements and failure to disclose key information"

According to Cointelegraph, a group of investors in Bakkt Holdings, a cryptocurrency custody and trading company, have filed a class action lawsuit alleging false or misleading statements and failure to disclose certain information. According to documents submitted to the United States District Court for the Southern District of New York on April 2, the investor group claims to have suffered losses due to violations of US securities laws and a lack of transparency in agreements with clients Webull and Bank of America (BoA). The investor group claimed in the lawsuit that losing Bank of America and Webull would result in a "73% loss of revenue". The document states that for most of 2023 and 2024, Webull accounted for 74% of Bakkt's encrypted service revenue, while Bank of America accounted for 17% of its loyalty service revenue from January to September 2024. Bakkt disclosed on March 17th that Bank of America and Webull have no intention of renewing their agreement with the company, which expires in 2025. The statement caused the company's stock price to drop by over 27% in the following 24 hours. Investors accuse Bakkt of "distorting the stability and/or diversity of its cryptocurrency service revenue" and failing to disclose that the revenue "heavily relies on" Webull's contracts. The lawsuit states: "Due to the defendant's wrongful acts and omissions, as well as the sharp decline in the market value of the company's securities, the plaintiff and other class members have suffered significant losses and damages