Spire Global (SPIR) Secures Debt Cancellation Amid Accounting Scandal, Investor Lawsuit – Hagens Berman

Class Action Lawsuit against Spire Global, Inc. (SPIR):

Troubled space data provider Spire Global has managed to avert financial distress by securing a waiver and modification of its debt obligations with Blue Torch Capital. The agreement, reached on August 27, 2024, offers immediate relief from leverage ratios in exchange for a hefty price tag.

The company must now pay a 3.5% modification fee on the outstanding principal amount of the term loan and was required to make a $10 million principal payment by Aug. 31. This comes at a time when Spire’s cash reserves are already stretched thin, with just $46 million in cash and equivalents as of June 30.

The debt restructuring comes amid a growing accounting scandal that has rocked the company. Spire recently admitted that it had to restate substantially all of its previously reported financial statements for 2022 and 2023 due to improperly recognized revenue for pre-space mission activities. The revelation marks a significant escalation from the company’s initial announcement in early August, when it said it would not file its Q2 2024 report on time. The company said at the time that it was reviewing its accounting practices and procedures related to revenue recognition with respect to certain contracts in its “Space as a Service” business. The company further explained that “(the) reevaluation relates to the potential existence of embedded leases of identifiable assets in the contracts and the related revenue recognition for pre-space mission activities.”

The accounting irregularities have not only led to breaches of financial covenants, but have also prompted a class-action lawsuit against the company. Investors allege that Spire misrepresented and failed to disclose the true nature of certain contracts and the associated 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 examining whether Spire’s recent disclosures and stock performance warrant an extension of the alleged class action period.”

If you invested in Spire Global and suffered significant losses, or have knowledge that could assist the company’s investigation, submit your losses now »

If you would like more information and answers to frequently asked questions about the Spire Global case and our investigation, please read on »

Whistleblowers: Persons with nonpublic information about Spire Global should consider their options to assist in the investigation or utilize the SEC Whistleblower Program. Under the new program, whistleblowers who provide original information can receive rewards totaling 30 percent of a successful recovery by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or send an email to [email protected].

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About Hagens Berman
Hagens Berman is a global law firm focused on complex plaintiffs’ rights litigation, focused on corporate accountability. The firm has a robust practice representing investors, whistleblowers, employees, consumers and others in cases that produce real results for those harmed by corporate negligence and other wrongdoing. The Hagens Berman team has secured more than $2.9 billion in this area of ​​law. To learn more about the firm and its successes, visit hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

To view the source version of this press release, visit https://www.newsfilecorp.com/release/222428

The Spire Global Registered (A) Stock had risen by 1.5% at the time of the news release. +0.68 % until 7.45EUR at the Tradegate fair (September 5, 2024, 10:26 PM).