NEW YORK, Sept. 05, 2021 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Stable Road Acquisition Corp. (“Stable Road” or the “Company”) (NASDAQ:SRAC) and reminds investors of the September 13, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $50,000 investing in Stable Road stock or options between October 7, 2020 and July 13, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/SRAC.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Delaware, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that Stable Road’s target acquisition company, Momentus, had only conducted a single in-space test, which did not meet any of Momentus’s pre-launch evaluation criteria, thus the company had not “successfully tested” its technology; (2) that the sole in-space test conducted by Momentus was never designed to test the commercial viability of the company’s thrusters; (3) that, as a result, Momentus’s progress in commercializing its technology was significantly overstated; (4) that Kokorich had been informed that the U.S. Government considered him to be a “threat” that caused his affiliation with another space technology company to be a risk to national security; (5) that, because Kokorich was considered a national security risk, Momentus would face challenges obtaining the necessary licenses and approvals for its commercial launches; (6) that, as a result, Kokorich’s affiliation with Momentus jeopardized, among other things, the company’s launch schedule and revenue projections which were based on assumptions about the timing of the company’s first commercial launch; (7) that Stable Road had not conducted adequate due diligence, including as it relates to Momentus’s testing progress and national security concerns with Momentus’s CEO; (8) that, as a result of the failure to disclose the foregoing, Stable Road was reasonably likely to face regulatory scrutiny; and (9) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The truth began to emerge on January 4, 2021 when Stable Road revealed that Momentus’s January 2021 launch would be delayed. In a press release as Exhibit 99.1 to a Form 8-K filed with the SEC, Stable Road announced that Momentus’s January 2021 launch would be “remanifest[ed] . . . to a subsequent launch opportunity in 2021” and that “[t]his move will allow for the additional time necessary to secure FAA [Federal Aviation Administration] approval of Momentus’ payloads . . . .”
On this news, the Company’s stock price fell $1.71, or 9.5%, over two consecutive trading sessions to close at $16.25 per share on January 5, 2021, on unusually heavy trading volume.
The truth continued to emerge on January 25, 2021 when Stable Road filed a press release as Exhibit 99.1 to a Form 8-K filed with the SEC. It announced that Kokorich had resigned from the company. It further stated: “Momentus, in consultation with the Company’s announced SPAC partner, Stable Road . . . , has determined that accepting Mr. Kokorich’s resignation is in the best interest of the Company, in an effort to expedite the resolution of U.S. government national security and foreign ownership concerns surrounding the Company, the existence of which the Company has recently confirmed.”
On this news, the Company’s stock price fell $4.75, or 19%, over three consecutive trading sessions to close at $20.10 per share on January 27, 2021.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Stable Road’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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