NEW YORK, July 29, 2021 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Stable Road Acquisition Corp. (“Stable Road” or the “Company”) (NASDAQ: SRAC) securities from October 7, 2020 through July 13, 2021, inclusive (the “Class Period”). Investors have until September 13, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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 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. The press release stated that the merger would “create the first publicly traded space infrastructure company at the forefront of the new space economy.”
On January 25, 2021, Momentus announced that Defendant Kokorich had resigned as Momentus’s Chief Executive Officer (“CEO”) “in an effort to expedite the resolution of U.S. government national security and foreign ownership concerns surrounding the Company.”
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. On the same day, 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, Stable Road’s share declined by $1.22 per share, or approximately 10.3%, from $11.88 per share to close at $10.66 per share on July 14, 2021.
The 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.
If you purchased or otherwise acquired Stable Road securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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