Glancy Prongay & Murray LLP Files Securities Fraud Lawsuit Against Stable Road Acquisition Corp.

LOS ANGELES, July 23, 2021 – (BUSINESS WIRE) – Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the US District Court for the Central District of California entitled Hall v Stable Road Acquisition Corp., et al., (Case No. 21-5943) on behalf of the persons and entities that make up Stable Road Acquisition Corp. (“Stable Road” or the “Company”) acquired or otherwise acquired SRACW, SRACU) securities between October 7, 2020 and July 13, 2021, inclusive (the “Class Period”). Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

Investors are hereby notified that they have until September 13, 2021 to move the court as the lead plaintiff in this lawsuit.

If you have suffered a loss on your Stable Road investment or would like to inquire whether you can use U.S. securities laws to recover your loss, your contact information can be found at https://www.glancylaw.com / cases / stable- transmit. road-acquisition-corp /. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, email [email protected], or visit our website at www.glancylaw.com to learn more about your rights.

Stable Road is a special purpose vehicle for acquisition (“SPAC”). Momentus Inc. (“Momentus”) is currently a privately held company.

On October 7, 2020, Momentus announced that it had signed a definitive merger agreement with Stable Road, making Momentus a publicly traded company. The transaction was initially valued at $ 1.13 billion but was later reduced to $ 466.6 million in June 2021 due to delays in the company’s first commercial launch.

On January 4, 2021, Stable Road announced that the January 2021 launch of Momentus would be “remanufactured”[ed] . . . to a later launch in 2021 “as the company needed additional time to obtain the necessary regulatory approvals.

The story goes on

As a result of this news, the company’s share price fell $ 1.71, or 9.5%, in two consecutive trading sessions, closing at $ 16.25 per share on January 5, 2021 with unusually high trading volume.

On January 25, 2021, Momentus announced that Kokorich had left the company. The press release also states that Momentus, in consultation with Stable Road, “has determined that accepting Mr. Kokorich’s resignation is in the best interests of the company in order to resolve US government concerns about national security and foreign property speed related to the company. whose existence the company recently confirmed. “

In light of this news, the company’s stock price fell $ 4.75, or 19%, for three consecutive trading sessions, closing at $ 20.10 per share on January 27, 2021.

On May 24, 2021, Stable Road announced that Momentus “does not expect any missions in 2021” pending regulatory approvals.

Due to this news, the company’s share price fell $ 1.61, or about 14%, on an unusually high trading volume, and closed at $ 10.42 per share on May 24, 2021.

On July 13, 2021, after the market closed, the SEC announced a settlement with Stable Road for fines of over $ 8 million; its sponsor SRC-NI; Chief Executive Officer of Stable Road, Brian Kabot; and its merger target Momentus. The charges relate to misleading claims about Momentus technology and national security risks related to Mikhail Kokorich (“Kokorich”), the founder and former CEO of Momentus. According to SEC indictments, Stable Road had reiterated Momentus’ misleading claims that it “successfully tested” its propulsion technology in space, even though the company’s only in-space test failed to meet its primary mission objectives or demonstrated the technology’s commercial viability. “

As a result of this news, the company’s share price fell $ 1.20, or over 10%, amid unusually high trading volumes, closing at $ 10.68 per share on July 14, 2021.

During the class action period, defendants made materially false and / or misleading statements and failed to disclose material adverse facts about the business, operations and prospects of the company. Specifically, Defendants have failed to disclose to investors: (1) that Momentus conducted only one space test that did not meet any of Momentus’ pre-launch evaluation criteria, causing the Company not to “successfully test” its technology; (2) that the only test carried out by Momentus in space was never designed to test the commercial viability of the company’s engines; (3) that as a result, Momentus’ advances in commercializing its technology have been significantly overstated; (4) that Kokorich was informed that the US government viewed him as a “threat” that resulted in his affiliation with another space technology company posing a national security risk; (5) Since Kokorich was viewed as a national security risk, Momentus would face challenges in obtaining the necessary licenses and permits for its commercial launches; (6) that, as a result, Kokorich’s association with Momentus, among other things, jeopardized the company’s launch plan and revenue projections based on assumptions about when the company’s first commercial launch; (7) that Stable Road had failed to conduct adequate due diligence, including regarding Momentus testing progress and national security concerns with the Momentus CEO; (8) Stable Road was reasonably likely to have been subject to regulatory scrutiny for failure to disclose the foregoing; and (9) that, based on the foregoing, Defendants’ positive statements about the business, operations, and prospects of the Company were materially misleading and / or improperly based.

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If you have purchased or otherwise acquired Stable Road securities during the Class Action Period, you may be brought to court no later than 13. To be a member of the Class, you do not need to take any action at that time; You can hire a lawyer of your choice or do nothing and remain an absent member of the group. If you would like to learn more about this promotion, or have any questions about this announcement or your rights or interests in relation to these matters, 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, email [email protected], or visit our website at www.glancylaw.com. For inquiries by e-mail, please include your postal address, telephone number and the number of shares purchased.

This press release may be viewed as a solicitation in some jurisdictions subject to applicable laws and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/202107220060667/en/

contacts

Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
www.glancylaw.com
[email protected]

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