Aug 07, 2021 10:05 AM ET
Legal Newswire POWERED BY LAW.COM
Milberg Coleman Bryson Phillips Grossman (“Milberg”), a global law firm representing investors and consumers, announces that class action lawsuits have been filed on behalf of purchasers of Stable Road Acquisition Corp. securities during the period between October 7, 2020 and July 13, 2021 (the “Class Period”). The Stable Road class actions allege that Stable Road, its sponsor SRC-NI Holdings, LLC, Stable Road’s senior executives, and Momentus Inc. and its former CEO, violated the Securities Exchange Act of 1934. There are two class actions pending in the Central District of California (Jensen v. Stable Road Acquisition Corp., No. 21-cv-05744, assigned to the Honorable Judge John F. Walter, and Hall v. Stable Road Acquisition Corp., No. 21-cv-05943).
The actions allege that defendants materially misled investors about important facts relating to Stable Road’s planned merger with Momentus, including making the materially false and misleading statements and/or failing to disclose that: (1) Momentus’ 2019 test of its thruster technology was a failure; (2) the U.S. government had labelled Momentus’ CEO, Mikhail Kokorich, a national security threat, which jeopardized his continued role at Momentus, and threatened Momentus’ prospects; and (3) Stable Road did not conduct proper due diligence of Momentus and misrepresented those efforts. These misrepresentations and/or omissions caused Stable Road securities to trade at artificially inflated prices throughout the Class Period.
On January 25, 2021, Momentus announced that defendant Kokorich resigned as Momentus’ CEO to resolve the U.S. government’s national security concerns. In reaction to this news, Stable Road stock fell almost 20% in three trading days, closing at $20.10 per share on January 27, 2021.
Then, on July 13, 2021, the U.S. Securities and Exchange Commission (“SEC”) charged Stable Road, its sponsor SRC-NI, its CEO Brian Kabot, Momentus and Kokorich for misleading investors about Momentus’s technology, and about Kokorich’s national security issues. According to the SEC, all parties other than Kokorich have settled with the SEC, for penalties of more than $8 million and other relief. On this news, the price of Stable Road Class A stock fell 10%, further damaging investors.
Pursuant to the Private Securities Litigation Reform Act (“PSLRA), any member of the purported class can move to serve as lead plaintiff. A lead plaintiff makes important decisions about the case and oversees the litigation. Any interested investor must file a motion with the Court by no later than September 13, 2021. Your ability to share in any recovery does not require that you serve as lead plaintiff; if there is a recovery for the class and you are part of that class, you can recover by submitting the claim forms at that time, whether or not you are the lead plaintiff.
About Milberg Coleman Bryson Phillips Grossman
Established by members of Milberg Phillips Grossman LLP, Sanders Phillips Grossman LLC, Greg Coleman Law PC, and Whitfield Bryson LLP, Milberg represents plaintiffs in the areas of antitrust, securities, financial fraud, consumer protection, automobile emissions claims, defective drugs and devices, environmental litigation, financial and insurance litigation, and cyber law and security. Milberg has nearly 100 attorneys operating on three continents. The firm and its affiliates have recovered over $50 billion in verdicts and settlements.* Milberg offices are located in New York, London, California, Georgia, Mississippi, Washington, Tennessee, Florida, New Jersey, North Caroline, South Carolina, Kentucky, and Puerto Rico.
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Tags: Wire, Classaction-Marketing, Legal Newswire, United States, English