COMPANY |
Stable Road Acquisition Corp. |
COURT |
United States District Court for the Central District of California |
CASE NUMBER |
21-cv-05744 |
JUDGE |
The Honorable John F. Walter |
CLASS PERIOD |
October 7, 2020 - July 13, 2021 |
SECURITY TYPE |
Common Stock and Warrants |
Case Background:
The Class Period commences on October 7, 2020, when Stable Road and Momentus issued a joint press release announcing that Stable Road had agreed to acquire Momentus in a proposed merger, subject to shareholder approval (the “Merger”). On October 13, 2020, Stable Road filed on a Form 8-K an investor presentation regarding the Merger. The investor presentation stated that Momentus had an enterprise value of $1.2 billion and stated that its “Groundbreaking Water Propulsion Technology” had been “[s]uccessfully tested . . . on a demo flight launched mid-2019.” The complaint alleges that the Defendants failed to disclose the adverse facts about Momentus’ business, operations, and prospects and Stable Road’s due diligence activities in connection with the Merger.
The complaint alleges that the Defendants misrepresented and failed to disclose that: (1) Momentus’ 2019 test of its key technology, a water plasma thruster, had failed to meet Momentus’ 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 Mr. Kokorich a national security threat, which jeopardized Mr. Kokorich’s continued leadership of Momentus and Momentus’ launch schedule and business prospects; (3) as a result of the above, 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 the defendants had materially misrepresented the due diligence activities being conducted by the Sponsor and Stable Road executives in connection with the Merger.
Current Status of Case:
On September 20, 2023, the Court issued an Order granting Lead Plaintiffs Motion for Preliminary Approval of Settlement and scheduled a Settlement Hearing on April 22, 2024. This action is ongoing.
The deadline to file a claim is April 5, 2024. If you have any questions or need further information about this settlement, you may go to the following website, www.StableRoadSecuritiesSettlement.com, or you can contact the claims administrator, Strategic Claims Services at 1-866-274-4004.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.