INVESTOR ALERT: Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Stable Road Acquisition Corp. (SRAC) Investors and Encourages Investors to Contact the Firm Before September 13, 2021
NEW YORK–(BUSINESS WIRE) – Kirby McInerney LLP law firm is reminding investors that a class action lawsuit has been filed in the US District Court for the Central District of California on behalf of those who own the 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 for appointment as lead plaintiff in the litigation.
Stable Road was founded as a blank check company, also known as the Special Purpose Acquisition Company or “SPAC”. On October 7, 2020, Stable Road and Momentus Inc. (“Momentus”) – a privately held commercial space company – issued a joint press release announcing that Stable Road has agreed to merge Momentus, subject to the approval of the Shareholders to take over. The press release stated that the merger would “create the first public space infrastructure company at the forefront of the new space economy.”
On January 25, 2021, Momentus announced that Mikhail Kokorich had resigned as Chief Executive Officer (“CEO”) of Momentus “to expedite resolution of US government national security and foreign ownership concerns related to the company “.
Then, on July 13, 2021, the US Securities and Exchange Commission announced charges against Stable Road, its CEO, Defendant Brian Kabot, SRC-NI Holdings, Momentus and Defendant Kokorich for “misleading claims about Momentus’ technology.” and about national security risks related to Kokorich. ”The publication stated, among other things, that all parties except the Defendant Kokorich had settled the total charges against them for a total amount of 8 million US dollars, while the proceedings against the Defendant Kokorich continued . On the same day, the SEC released an injunction and lawsuit against Defendant Kokorich detailing the defendant’s scheme for defrauding investors in connection with the merger. In light of the news, Stable Road stock declined $ 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 during the class action period defendants were aware of adverse facts about the business, operations, and prospects of Momentus, as well as Stable Road’s due diligence activities relating to the merger, of which the defendants were aware or reckless of them has been disregarded, misrepresented and not disclosed because: (a) Momentus’ 2019 test of its key technology, a water plasma engine, did not meet Momentus’s own public and internal success criteria and was conducted on a prototype that was not designed to produce commercially significant amounts of. to generate thrust; (b) the US government announced that it viewed former Momentus CEO Kokorich as a national security threat that endangered Kokorich’s continued leadership of Momentus and its launch plan and business prospects; (c) as a result, the sales projections and the business and operational plans made available to investors in relation to the momentus and economic viability and timing of its products were materially false, misleading and in fact unfounded; and (d) Stable Road had failed to properly due diligence on Momentus and its business, and Defendants had materially misrepresented the due diligence activities of Stable Road executives and their sponsor in connection with the merger.
If you have bought or otherwise acquired securities from Stable Road, 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 research @ kmllp .com or by filling out this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York based law firm focused on securities, antitrust, whistleblower and consumer disputes. The company’s efforts on behalf of shareholders in securities disputes have resulted in total recoveries of billions of dollars. For more information about the company, please visit the Kirby McInerney LLP website: http://www.kmllp.com.
This press release may be viewed as a solicitation in some jurisdictions subject to applicable laws and ethical rules.