Spire Global, Inc. (SPIR) Class Action

Spire, a global provider of space-based data, analytics and Space Services, is the target of an investor class action over the company’s assurances that its financial reports complied with applicable accounting rules and that its internal controls over financial reporting were sufficient.

The litigation challenges Spire’s financial reporting relating to certain Space Services contracts.

The complaint alleges that Spire misrepresented and failed to disclose that: (1) there were embedded leases of identifiable assets and pre-space mission activities for certain Space Services contracts; (2) the company lacked sufficient internal controls for revenue recognition for these contracts; and (3) as a result, the company overstated revenue for certain Space Services contracts.

Investors began to learn the truth on August 14, 2024, when Spire announced that it would not timely file its Q2 quarterly report as previously planned. The company said that it is 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.”

Spire also said that it may be required to restate previously filed financial statements and the type of contracts being re-evaluated resulted in recognized revenue of approximately $10 million to $15 million.

Further, Spire said that, based on preliminary information, it believes it may be in violation of the maximum debt to EBITDA leverage ratio financial covenant under its financing agreement with Blue Torch Finance. The company said it is attempting to secure waivers or amendments to the financing agreement but could give no assurances of success.

At the time of the complaint’s filing, Spire had not filed its quarterly report.

This news sent the price of Spire shares about 33% lower on August 15, 2024.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the SPIR investigation about?

We are looking into whether Spire Global may have misled investors about financial results and overall health.

WHAT SHOULD I DO?

I worked at SPIR. What should I do?

If you were an employee of SPIR, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in SPIR, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any SPIR investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.