Robbins Geller Rudman & Dowd LLP Announces that Investors with Substantial Losses Have Opportunity to Lead the Stable Road Acquisition Corp. Class Action Lawsuit – SRAC, SRACW, SRACU
SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP has filed a class action lawsuit to seek buyers of securities in Stable Road Acquisition Corp. (NASDAQ: SRAC; SRACW; SRACU) between October 7, 2020 and July 13, 2021 (the “School Lesson”). The Stable Road class action lawsuit alleges Stable Road, its sponsor SRC-NI Holdings, LLC, and some of theirs Executives as well as Momentus Inc. and its former CEO for violating 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, and a similar lawsuit, Hall v. Stable Road Acquisition Corp., No. 21-cv-05943, is also pending in the Central District of California.
If you have suffered significant losses and wish to stand as the lead plaintiff in the Stable Road class action, please provide your information by clicking here. You can also contact Attorney Brian E. Cochran of Robbins Geller by phone at 800 / 449-4900 or by email at firstname.lastname@example.org. Lead plaintiffs’ motions for the Stable Road class action must be filed with the court no later than September 13, 2021.
The plaintiff is represented by Robbins Geller, who years of experience in the prosecution of investor class actions, including actions related to financial fraud. You can view a copy of the complaint by clicking here.
CASE ALLEGATION: Stable Road was founded as a blank check company, also known as the Purpose Acquisition Company or “SPAC”. On October 7, 2020, Stable Road and Momentus – a privately held commercial space company – issued a joint press release announcing that Stable Road has agreed to acquire Momentus as part of a proposed merger, subject to shareholder approval. The press release stated that the merger would “create the first public space infrastructure company at the forefront of the new space economy.”
The Stable Road class action alleges that during the collection period the defendants learned about adverse facts about the business, operations, and prospects of Momentus, as well as Stable Road’s due diligence activities in connection with the merger, of which the defendants were or were aware which they carelessly disregarded, misrepresented, and failed to disclose by them as follows: (a) Momentus ‘2019 test of its key technology, a water plasma engine, did not meet Momentus’ own public and internal success criteria and was prototyped carried out that was not designed to handle commercially significant thrusts; (b) the US government had announced that it viewed Momentus CEO Defendant Mikhail Kokorich as a national security threat, endangering Kokorich’s continued leadership of Momentus and the launch schedule and business prospects of Momentus; (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 the due diligence activities carried out by the executives of Stable Road and its sponsor in connection with the merger were material misrepresented.
On January 25, 2021, Momentus announced that Defendant Kokorich had resigned as CEO of Momentus “to expedite resolution of US government national security and foreign ownership concerns related to the company.” In light of this news, the Stable Road Class A share fell 19% in three trading days, closing at $ 20.10 per share on January 27, 2021.
Then, on July 13, 2021, the US Securities and Exchange Commission announced indictments against Stable Road, its CEO, Defendant Brian Kabot, SRC-NI Holdings, Momentus and Defendant Kokorich for “misleading claims about Momentus’ technology” and national security risks related to Kokorich. ”The publication said, among other things, that all parties except the Defendant Kokorich had settled the total charges against them for a total of 8 million US dollars, while the trial against the Defendant Kokorich continued . Also on July 13, 2021, the SEC issued an injunction and lawsuit against Defendant Kokorich detailing defendants’ plans to defraud investors in connection with the merger. As a result of this news, the price of Stable Road Class A stock fell another 10%, which did further damage to investors.
Robbins Geller has started a special SPAC task force to protect investors in blank check companies and seek redress for corporate misconduct. The SPAC Task Force consists of experienced litigation attorneys, investigators and forensic accountants and is dedicated to detecting and prosecuting fraud on behalf of aggrieved SPAC investors. The rise in blank check funding poses unique risks for investors. Robbins Geller’s SPAC Task Force represents the vanguard in ensuring integrity, honesty and equity in this rapidly evolving area of investment.
LEAD ACTION: The Private Securities Litigation Reform Act of 1995 allows any investor who has purchased Stable Road securities during the class action period to seek appointment as the lead plaintiff in the Stable Road class action. A lead plaintiff is usually the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all the other group members in directing the Stable Road class action lawsuit. The lead plaintiff can choose a law firm of their choice to bring the Stable Road class action lawsuit. An investor’s ability to participate in a possible future collection of Stable Road’s class action lawsuit does not depend on whether or not they are the lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm serving investors in securities class actions. Robbins Geller’s attorneys have secured many of the largest shareholder recoveries in history, including the largest securities class action of all time – $ 7.2 billion – in In re Enron Corp. Sec. Lit. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for getting $ 1.6 billion back for investors last year, more than double the amount paid by any other securities plaintiff firm was drafted. Please visit https://www.rgrdlaw.com/firm.html for more information.
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