According to the Complaint, Stable Road Acquisition Corp. is a blank check company. A blank check company is sometimes referred to as a special purpose acquisition vehicle, or “SPAC,” and does not initially have any operations or business of its own. Rather, it raises money from investors in an initial public offering and then uses the proceeds from the offering to acquire a business or operational assets, usually from a private company that does not publicly report financial or operating results. As a result, investors in blank check companies rely on the skill, transparency and honesty of the blank check company’s sponsor to spend the offering proceeds to acquire a fundamentally sound target company that offers attractive risk-adjusted returns for investors.

On October 7, 2020, Stable Road and Momentus – a private commercial space company – issued a joint press release announcing that Stable Road had agreed to acquire Momentus in a proposed merger, subject to shareholder approval. The press release stated that the merger would "create the first publicly traded space infrastructure company at the forefront of the new space economy."

The Complaint alleges that, throughout the Class Period, Defendants misrepresented and failed to disclose adverse facts about Momentus's business, operations, and prospects and Stable Road's due diligence activities in connection with the merger, which were known to Defendants or recklessly disregarded by them, as follows: (a) 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) the U.S. government had conveyed that it considered Momentus's CEO a national security threat, which jeopardized the CEO's continued leadership of Momentus and Momentus's launch schedule and business prospects; (c) consequently, 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; and (d) 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 Stable Road executives and its sponsor in connection with the merger.

On October 20, 2021, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 21-CV-05744.

Lead Plaintiff filed an amended consolidated Complaint on November 12, 2021. On February 25, 2022, Defendants filed a Motion to Dismiss the amended consolidated Complaint. On July 13, the Court granted in part and denied in part Defendants' Motion to Dismiss.

On April 10, 2023, the parties notified the Court that they had reached an agreement in principle to settle the case. The parties entered into a Stipulation and Agreement of Settlement on August 18. The Court granted preliminary approval of the Settlement on September 20. On April 23, 2024, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On March 24, 2025, the Court issued an Order authorizing distribution of the Settlement funds.