Astra’s LV0007 launch vehicle on the pad in November 2021. Photo: Astra
A number of law firms have filed or announced intent to file shareholder class action lawsuits against AstraSpace, after a critical analyst report and the company’s launch failure on Thursday. Astra called the claims “without merit” in filings to the Securities and Exchange Commission (SEC).
Astra’s mission for NASA on Feb. 10 failed after the rocket experienced after stage separation. The company said it will provide more information after a data review, and as of press time on Friday had not given any additional information.
The launch failure occurred on Feb. 10 after Astra scrubbed a launch attempt on Feb. 8.
On Feb. 9, before the launch failure, Rosen Law Firm filed a shareholder class action lawsuit in the United States District Court for the Eastern District of New York. The lawsuit alleges that Astra CEO Chris Kemp, CFO Kelyn Brannon, and former CFO Steven Ednie made false and misleading statements to investors.
“Defendants made false and/or misleading statements and/or failed to disclose that: Astra cannot launch “anywhere”; Astra significantly overstated its addressable market; Astra overstated the effectiveness of its designs and reliability; Astra significantly overstated its plans for diversification and its broadband constellation plan; and as a result, defendants’ public statements were materially false and/or misleading at all relevant times,” according to the lawsuit, obtained by Via satellite through the PACER database.
Astra has been publicly traded since July 2021, when it went public after a special purpose acquisition company (SPAC) merger.
Rosen Law Firm cited a research report from Kerrisdale Capital “Astra Space, Inc (ASTR): Headed for Dis-Astra,” published in December 2021with concerns about Astra’s claims that the company can launch from anywhere, reliability and quality, and plans for diversification and a broadband constellation.
astra confirmed the lawsuit in a filing to the SEC on Thursday, and issued a response: “Astra believes the claims are without merit and Astra, Mr. Kemp and Ms. Brannon will vigorously defend against these claims.”
A number of other corporate litigation firms have also announced that they have filed or plan to file a class action suit including: Kaskela Law LLC; Gainey McKenna & Egleston; The Law Offices of Frank R. Cruz; Robbins Geller Rudman & Dowd LLP; Bronstein, Gewirtz & Grossman; and The Schall Law Firm.
These firms are seeking investors to participate in the suits and it is unclear if all have lead plaintiffs.
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