NEW YORK, Nov. 18, 2022 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the Central District of California on behalf of all persons or entities who purchased Bird Global, Inc. f/k/a Switchback II Corporation securities (“Bird Global” or “Company”) BRDS between May 14, 2021 and November 14, 2022, both dates inclusive (the “Class Period”).
According to the Complaint, defendants made false and/or misleading statements and/or failed to disclose that throughout the Class Period: (i) Bird Global was improperly recording Sharing revenue for certain trips by its customers where collection was not probable; (ii) as such, Bird Global overstated its Sharing revenue for the relevant quarters and fiscal year during the Class Period; (iii) Bird Global failed to disclose that its internal controls were not effective as they relate to calculating Sharing revenue recognition; and (iv) as a result, Bird Global would need to restate its previously disclosed Sharing revenue.
On November 14, 2022, Bird Global revealed that it would restate its consolidated financial statements for certain financial periods because of concerning the recognition of Sharing revenue. Specifically, Bird Global admitted that “for certain customers with insufficient preloaded ‘wallet’ balances, [Bird Global’s] business systems recorded revenue for uncollected balances following the completion of certain Rides that should not have been recorded.” Bird Global further disclosed that “any previously furnished or filed reports, related earnings releases, investor presentations or similar communications of [Bird Global] describing [Bird Global’s] financial results contained in the Original Filings should no longer be relied upon.” On this news, Bird Global’s share prices fell by approximately 15%, damaging investors
Investors who purchased or otherwise acquired shares of Bird Global should contact the Firm prior to the January 17, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com or firstname.lastname@example.org.
Please visit our website at http://www.gme-law.com for more information about the firm.