Momentus Inc. (formerly Stable Road Acquisition Corp.)

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:

(a) 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;
(b) that the U.S. government had conveyed that it considered the CEO
of Momentus, defendant Kokorich, a national security threat, which jeopardized defendant Kokorich’s continued leadership of Momentus and Momentus’s launch schedule and business prospects;
(c) that, as a result of (a) and (b) above, the revenue projections and business and operational plans provided to investors regarding Momentus and the commercial viability and timeline of its products were materially false and misleading and lacked a reasonable basis in fact;
(d) that Stable Road had failed to conduct appropriate due diligence of Momentus and its business operations and defendants had materially misrepresented the due diligence activities being conducted by the Sponsor and Stable Road executives in connection with the Merger.