Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Stable ...
NEW YORK, July 16, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Stable Road Acquisition Corp. (“Stable Road” or the “Company”) (NASDAQ: SRAC; SRACW; SRACU) in the United States District Court for the Central District of California on behalf of those who purchased or otherwise acquired Stable Road publicly traded securities between October 7, 2020 and July 13, 2021, inclusive (the “Class Period”).
Stable Road was launched as a blank check company, also known as a special purpose acquisition company or “SPAC.” On October 7, 2020, Stable Road and Momentus – a private commercial space company – issued a joint press release announcing that Stable Road had agreed to acquire Momentus in a proposed merger.
The Complaint alleges that Defendants misrepresented and failed to disclose adverse facts about Momentus as follows: (i) 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; (ii) the U.S. government had conveyed that it considered Momentus’s CEO, Mikhail Kokorich, a national security threat, which jeopardized Kokorich’s continued leadership of Momentus and Momentus’s launch schedule and business prospects; (iii) consequently, 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 (iv) 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 Stable Road executives and its sponsor in connection with the merger.
On July 13, 2021, the U.S. Securities and Exchange Commission (“SEC”) announced charges against Stable Road, its CEO, Brian Kabot, SRC-NI Holdings, Momentus, and Kokorich for making “misleading claims about Momentus’s technology and about national security risks associated with Kokorich.” The release, among other things, stated that all parties other than Kokorich had settled the charges against them for $8 million in total, while the case against Kokorich continued. Also on July 13, 2021, the SEC publicized a cease-and-desist order and complaint against Kokorich which detailed defendants’ scheme to defraud investors in connection with the merger. On this news, the price of Stable Road stock fell an additional 10%, further damaging investors.
Investors who purchased or otherwise acquired shares of Stable Road during the Class Period should contact the Firm prior to the September 13, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
Please visit our website at http://www.gme-law.com for more information about the firm.