Philadelphia, Pennsylvania--(Newsfile Corp. - July 28, 2021) - Berger Montague is investigating securities fraud allegations against Stable Road Acquisition Corp. ("Stable Road" or the "Company"). The Firm is investigating these claims on behalf of investors who purchased Stable Road securities (NASDAQ: SRAC) (NASDAQ: SRACU) (NASDAQ: SRACW) between October 7, 2020 and July 13, 2021 (the "Class Period").
If you purchased Stable Road securities during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Donnell Much at dmuch@bm.net or (215) 875-4667, or fill out the form on www.bergermontague.com/stable-road.
Whistleblowers: Anyone with non-public information regarding Stable Road is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Stable Road is a special purpose acquisition company (SPAC) that went public in November 2019 via initial public offering. Momentus Inc. ("Momentus"), a private space transportation company, was an acquisition target of Stable Road during the Class Period.
On October 7, 2020, Stable Road and Momentus issued a joint press release announcing that Stable Road had agreed to acquire Momentus in a proposed merger. An investor presentation issued shortly after that announcement represented that Momentus had an enterprise value of $1.2 billion and that its "Groundbreaking Water Propulsion Technology" had been "[s]uccessfully tested . . . on a demo flight launched mid-2019." According to recently filed lawsuits, defendants failed to disclose the adverse facts about Momentus' business, operations, and prospects, as well as Stable Road's due diligence in connection with the Merger.
On January 25, 2021, Momentus announced that Momentus' CEO and founder, Mikhail Kokorich, had resigned "in an effort to expedite the resolution of U.S. government national security and foreign ownership concerns surrounding the Company." In response, the price of Stable Road securities fell $4.75 per share (19%) over the next three trading days, to close at $20.10 on January 27, 2021.
Then, on July 13, 2021, the U.S. Securities and Exchange Commission announced charges against Stable Road, Momentus, and members of key management for making "misleading claims about Momentus' technology and about national security risks associated with Kokorich." The release stated that all parties other than Defendant Kokorich had settled the charges against them for $8 million in total, while the case against Defendant Kokorich was ongoing. Also on July 13, 2021, the SEC publicized a cease-and-desist order and complaint against Defendant Kokorich. On this news, the price of Stable Road securities fell $1.22 per share, or 10%, to close at $10.66.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Donnell Much, Associate
Berger Montague
(215) 875-4667
dmuch@bm.net
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/91428
