Bird Global, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Bird Global, Inc. (“Bird” or the “Company”) (NYSE: BRDS) securities during the period from May 14, 2021 through November 14, 2022 (the “Class Period”). Investors have until January 17, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Bird is an electric vehicle company focusing on transportation solutions such as e-scooters and e-bikes.
On November 14, 2022, Bird announced a restatement of its financial statements for certain periods in 2020, 2021, and 2022 in order to correct an error regarding “recognition of revenue on certain trips completed by customers of its Sharing business for which collectability was not probable.” On this news, the price of Bird shares declined by $0.07 per share, or approximately 15.94%, from $0.4330 per share to close at $0.3640 on November 14, 2022.
The lawsuit alleges that, throughout the Class Period: (1) Bird was improperly recording Sharing Revenue for certain trips by its customers where collection was not probable; (2) as such, Bird overstated its Sharing Revenue for the relevant quarters and fiscal year during the Class Period; and (3) Bird’s internal controls were not effective as they relate to calculating Sharing Revenue recognition.