The Law Offices of Frank R. Cruz reminds investors of the upcoming September 13, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Stable Road Acquisition Corp. (“Stable Road” or the “Company”) (NASDAQ: SRAC, SRACW, SRACU) securities between October 7, 2020 and July 13, 2021, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On October 7, 2020, Stable Road, a special purpose acquisition company, and Momentus, Inc. (“Momentus”), a private commercial space company, issued a joint press release announcing that Stable Road had agreed to acquire Momentus in a proposed merger, subject to shareholder approval.
On January 25, 2021, Momentus announced that its Chief Executive Officer (“CEO”), Mikhail Kokorich (“Kokorich”) had resigned as Momentus’s CEO “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 $4.75, or 19%, over three consecutive trading days to close at $20.10 per share on January 27, 2021.
Then, on July 13, 2021, after market hours, the U.S. Securities and Exchange Commission (“SEC”) announced a settlement for penalties exceeding $8 million for charges against Stable Road, its CEO, its sponsor, and Momentus. According to the SEC, Momentus “repeatedly told investors that it had ‘successfully tested’ its propulsion technology in space when, in fact, the company’s only in-space test had failed to achieve its primary mission objectives or demonstrate the technology’s commercial viability.” Stable Road repeated these misleading claims without conducting sufficient due diligence.
On this news, Stable Road’s Class A stock price fell $1.22, or 10%, to close at $10.66 per share on July 14, 2021, thereby injuring investors further.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Momentus’s 2019 test of its key technology, a water plasma thruster, had failed to meet Momentus’s own public and internal pre-launch criteria for success, and was conducted on a prototype that was not designed to generate commercially significant amounts of thrust; (2) the U.S. government had conveyed that it considered Momentus’s CEO, Kokorich, a national security threat, which jeopardized Kokorich’s continued leadership of Momentus and Momentus’s launch schedule and business prospects; (3) as a result of the foregoing, the revenue projections and business and operational plans provided to investors regarding Momentus and the commercial viability and timeline of its products were materially false and misleading and lacked a reasonable basis in fact; and (4) Stable Road had failed to conduct appropriate due diligence of Momentus and its business operations and defendants had materially misrepresented the due diligence activities being conducted by the sponsor and Stable Road executives in connection with the merger.
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If you purchased or otherwise acquired Stable Road securities during the Class Period, you may move the Court no later than September 13, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Stable Road Acquisition Corp. (SRAC, SRACW, SRACU)