BitGo faces securities class action over IPO disclosures, $60.7M loss

Pomerantz LLP filed a securities class action against BitGo Holdings over alleged IPO disclosure failures tied to a $60.7 million quarterly loss.

"The offering documents contained untrue statements of material fact regarding the risk that declining digital asset prices posed to BitGo's business," the complaint filed in the U.S. District Court for the Eastern District of New York said.

BitGo went public Jan. 22 at $18 a share, selling 11.8 million shares for proceeds of more than $187.6 million. The stock fell 15.7 percent on March 27 after the company reported a $14.8 million net loss for 2025, swinging from $156.6 million in net income a year earlier. It dropped another 17.2 percent on May 14 after BitGo disclosed a $60.7 million net loss for the first quarter of 2026, more than double the $25.7 million loss in the same period a year earlier.

Investors who purchased BitGo securities between Jan. 22, 2025 and May 13, 2026 have until Aug. 7 to seek appointment as lead plaintiff. The lawsuit seeks damages under Sections 11 and 15 of the Securities Act and Sections 10(b) and 20(a) of the Exchange Act.

The case centers on whether BitGo downplayed the severity of digital asset price declines on its revenue streams, which include digital asset sales and staking rewards. The company's Bitcoin treasury was "materially" impacted by falling crypto prices, BitGo disclosed in March. The lead plaintiff deadline of Aug. 7 will determine which investor directs the litigation. A court hearing on competing motions typically follows within weeks of the deadline.

This article is for informational purposes only and does not constitute investment advice.