NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of class action lawsuits against Stable Road Acquisition Corp. (“Stable Road” or the “Company”) (NASDAQ: SRAC) and certain of its officers and directors alleging violations of federal securities laws. If you purchased Stable Road securities between October 7, 2020 and July 13, 2021, inclusive (the “Class Period”) you are encouraged to contact Scott+Scott attorney Joe Pettigrew at firstname.lastname@example.org or 844-818-6982 for more information.
Stable Road is a blank check company. A blank check company is sometimes referred to as a special purpose acquisition vehicle, or “SPAC,” and does not initially have any operations or business of its own. Rather, it raises money from investors in an initial public offering and then uses the proceeds from the offering to acquire a business or operational assets, usually from a private company that does not publicly report financial or operating results. As a result, investors in blank check companies rely on the skill, transparency, and honesty of the blank check company’s sponsor to spend the offering proceeds to acquire a fundamentally sound target company that offers attractive risk-adjusted returns for investors.
The complaints allege that the Company and certain of its officers and directors misrepresented and concealed material facts about Stable Road's acquisition target, Momentus, a company that purports to operate in the commercial space industry.
Specifically, the complaints allege that in connection with the SPAC merger, the Company and certain of its officers and directors falsely represented that Momentus “successfully tested” its key technology in space when, in fact, the tests failed to meet Momentus’s own public and internal criteria for success. The complaints also allege that the Company concealed that the U.S. government had national-security concerns with Momentus’s CEO Mikhail Kokorich. Moreover, the complaints allege that the Company failed in its due diligence of Momentus.
On January 25, 2021, Momentus announced that defendant Kokorich had resigned his position as CEO of Momentus “in an effort to expedite the resolution of U.S. government national security and foreign ownership concerns surrounding the Company.”
On this news, Stable Road’s Class A stock price fell over a course of three trading days by $4.75 per share, or 19%, to close at $20.10 per share on January 27, 2021.
Then, on July 13, 2021, the SEC announced charges against Stable Road and others for making “misleading claims about Momentus’s technology and about national security risks associated with Kokorich.” The release stated that all parties other than defendant Kokorich had settled the charges against them for $8 million in total, while the case against defendant Kokorich continued. The same day, SEC also publicized a cease-and-desist order and complaint against Kokorich, which detailed Defendants' scheme to defraud investors in connection with the Momentus SPAC merger.
On this news, Stable Road’s Class A stock price fell $1.22 per share, or 10%, to close at $10.66 per share on April 14, 2021.
What You Can Do
If you purchased Stable Road securities between October 7, 2020 and July 13, 2021, and you wish to discuss these lawsuits, please contact attorney Joe Pettigrew at (844) 818-6982, or at email@example.com. The deadline to file for lead plaintiff is September 13, 2021.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, Virginia, California, and Ohio.