SRAC INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Stable Road Acquisition Corp., Opportunity for Investors With Substantial Losses to Lead Case - SRAC, SRACW, SRACU
Jul 28, 2021 2:48 PM ET
Legal Newswire POWERED BY LAW.COM
Robbins Geller Rudman & Dowd LLP has filed a class action seeking to represent purchasers of Stable Road Acquisition Corp. securities during the period between October 7, 2020 and July 13, 2021 (the "Class Period"). The Stable Road class action lawsuit charges Stable Road, its sponsor SRC-NI Holdings, LLC, and certain of its executives, along with Momentus Inc. and its former CEO, with violations of the Securities Exchange Act of 1934. The Stable Road class action lawsuit (Jensen v. Stable Road Acquisition Corp., No. 21-cv-05744) was filed in the Central District of California and is assigned to Judge John F. Walter.
CASE ALLEGATIONS: 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, subject to shareholder approval. The press release stated that the merger would "create the first publicly traded space infrastructure company at the forefront of the new space economy."
The Stable Road class action lawsuit alleges that, throughout the Class Period, defendants misrepresented and failed to disclose adverse facts about Momentus's business, operations, and prospects and Stable Road's due diligence activities in connection with the merger, which were known to defendants or recklessly disregarded by them, as follows: (a) 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; (b) the U.S. government had conveyed that it considered Momentus's CEO, defendant Mikhail Kokorich, a national security threat, which jeopardized Kokorich's continued leadership of Momentus and Momentus's launch schedule and business prospects; (c) 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 (d) 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 January 25, 2021, Momentus announced that defendant 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, the price of Stable Road Class A stock fell 19% over three trading days, to close at $20.10 per share on January 27, 2021.
Then, on July 13, 2021, the U.S. Securities and Exchange Commission ("SEC") announced charges against Stable Road, its CEO, defendant Brian Kabot, SRC-NI Holdings, Momentus, and defendant 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 defendant Kokorich had settled the charges against them for $8 million in total, while the case against defendant Kokorich continued. Also on July 13, 2021, the SEC publicized a cease-and-desist order and complaint against defendant Kokorich which detailed defendants' scheme to defraud investors in connection with the merger. On this news, the price of Stable Road Class A stock fell an additional 10%, further damaging investors.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller's SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Stable Road securities during the Class Period to seek appointment as lead plaintiff in the Stable Road class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Stable Road class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Stable Road class action lawsuit. An investor's ability to share in any potential future recovery of the Stable Road class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs' firm. Please visit https://www.rgrdlaw.com/firm.html for or more information.
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101 • 619-231-1058
Brian E. Cochran, 800-449-4900
Tags: Wire, Classaction-Marketing, Legal Newswire, United States, English