A Momentus investor sued the space infrastructure company in Delaware, citing concerns that sponsors of its 2021 blank-check merger pushed a flawed transaction because it was structured to give them a windfall whether the deal worked out or not, Bloomberg reports.
The lawsuit seeks files from the company to probe suspicions that insiders affiliated with Momentus and Stable Road Acquisition, the SPAC it combined with, duped investors into approving the deal by falsely hyping its propulsion technology and concealing their own conflicts of interest.
“The truth of the matter is that Momentus is still nowhere near finishing its water propulsion technology, much less commercializing” it, according to the complaint filed Thursday by an individual investor.
But Stable Road’s board was intent on getting “any deal done at all, even if the deal inflicted severe harm on the unaffiliated stockholders,” who were “robbed of their redemption rights” and “tricked into investing in an overvalued company,” the suit says.
Momentus didn’t immediately respond to a request for comment Friday. The company, along with certain top executives, last year paid $8 million to settle Securities and Exchange Commission fraud charges stemming from the merger. Read more.
