Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Stable Road Acquisition Corp. (SRAC, SRACW, SRACU)
LOS ANGELES, Aug. 24, 2021 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming September 13, 2021 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired 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 suffered a loss on your Stable Road investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/stable-road-acquisition-corp/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
Stable Road is a special purpose acquisition company ("SPAC"). Momentus Inc. ("Momentus") is currently a private company.
On October 7, 2020, Momentus announced that it had signed a definitive merger agreement with Stable Road, resulting in Momentus becoming a publicly traded entity. The transaction was initially valued at $1.13 billion, but was later cut to $466.6 million in June 2021 due to delays in the company's first commercial launch.
On January 4, 2021, Stable Road revealed that Momentus's January 2021 launch would be "remanifest[ed] . . . to a subsequent launch opportunity in 2021" because the company needed additional time to obtain the necessary regulatory approvals.
On this news, the Company's stock price fell $1.71, or 9.5%, over two consecutive trading sessions to close at $16.25 per share on January 5, 2021, on unusually heavy trading volume.
On January 25, 2021, Momentus announced that Chief Executive Officer ("CEO"), Mikhail Kokorich ("Kokorich") had resigned from the company. The press release also stated that Momentus, in consultation with Stable Road "determined that accepting Mr. Kokorich's resignation is in the best interest of the Company, in an effort to expedite the resolution of U.S. government national security and foreign ownership concerns surrounding the Company, the existence of which the Company has recently confirmed."
On this news, the Company's stock price fell $4.75, or 19%, over three consecutive trading sessions to close at $20.10 per share on January 27, 2021.
On May 24, 2021, Stable Road disclosed that Momentus "does not expect to fly any missions in 2021" because it was still securing regulatory approvals.
On this news, the Company's share price fell $1.61, or approximately 14%, to close at $10.42 per share on May 24, 2021, on unusually heavy trading volume.
On July 13, 2021, after market hours, the U.S. Securities and Exchange Commission ("SEC") announced a settlement for penalties exceeding $8 million with Stable Road; its sponsor SRC-NI; Stable Road's Chief Executive Officer, Brian Kabot; and its merger target Momentus. The charges relate to misleading claims about Momentus's technology and about national security risks associated with Kokorich, Momentus's founder and former CEO. According to the SEC's charges, Stable Road had repeated Momentus's misleading claims 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."
On this news, the Company's share price fell $1.20, or over 10%, to close at $10.68 per share on July 14, 2021, on unusually heavy trading volume.
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: (1) that Momentus had only conducted a single in-space test, which did not meet any of Momentus's pre-launch evaluation criteria, thus the company had not "successfully tested" its technology; (2) that the sole in-space test conducted by Momentus was never designed to test the commercial viability of the company's thrusters; (3) that, as a result, Momentus's progress in commercializing its technology was significantly overstated; (4) that Kokorich had been informed that the U.S. Government considered him to be a "threat" that caused his affiliation with another space technology company to be a risk to national security; (5) that, because Kokorich was considered a national security risk, Momentus would face challenges obtaining the necessary licenses and approvals for its commercial launches; (6) that, as a result, Kokorich's affiliation with Momentus jeopardized, among other things, the company's launch schedule and revenue projections which were based on assumptions about the timing of the company's first commercial launch; (7) that Stable Road had not conducted adequate due diligence, including as it relates to Momentus's testing progress and national security concerns with Momentus's CEO; (8) that, as a result of the failure to disclose the foregoing, Stable Road was reasonably likely to face regulatory scrutiny; and (9) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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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 Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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SOURCE Glancy Prongay & Murray LLP
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