SHAREHOLDER ALERT: Robbins LLP is Investigating Stable Road Acquisition Corp. (SRAC, SRACW, SRACU) on Behalf of Shareholders
SAN DIEGO–(BUSINESS WIRE)–$SRAC #Momentus–Shareholder rights law firm Robbins LLP is investigating the officers and directors of Stable Road Acquisition Corp. (NASDAQ: SRAC, SRACW, SRACU) to determine whether they breached fiduciary duties or violated securities laws in connection with the Company’s acquisition of Momentus Inc. Stable Road Acquisition Corp. is a special purpose acquisition company that went public in November 2019. Its purpose, according to a filing with the SEC, was to merge with a company in the cannabis industry. If you would like more information about our investigation of Stable Road Acquisition Corp.’s misconduct, click here. What is this Case About: On October 7, 2020, Stable Road and Momentus, a space company, issued a joint press release announcing that Stable Road had agreed to acquire Momentus in a proposed merger and touting the “compelling opportunity to create value through our investment.” Stable Road and Momentus founder Mikhail Kokorich highlighted Momentus’s “Groundbreaking Water Propulsion Technology,” which had been “[s]uccessfully tested … on a demo flight launched mid-2019.” What the defendants failed to disclose, however, was that Momentus’s 2019 test of its key technology – a water plasma thruster – had failed to meet Momentus’s own public and internal pre-launch criteria for success, and was conducted on a prototype that was not designed to generate commercially significant amounts of thrust. Further, Stable Road failed to disclose that the U.S. government conveyed that it considered Kokorich a national security threat, which jeopardized his continued leadership of Momentus. Stable Road failed to conduct due diligence in connection with the merger and as a result, the revenue projections and business and operational plans provided to investors regarding Momentus and the viability and timeline of its products were materially false and misleading. On January 25, 2021, Kokorich resigned his position as CEO of Momentus “to expedite…
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Source : SHAREHOLDER ALERT: Robbins LLP is Investigating Stable Road Acquisition Corp. (SRAC, SRACW, SRACU) on Behalf of Shareholders
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