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Momentus Announces Settlement of Class Action Lawsuit
SAN JOSE, Calif.--(BUSINESS WIRE)-- Momentus Inc. (NASDAQ: MNTS) ("Momentus" or the "Company"), a U.S. commercial space company that offers transportation
About this update from Momentus Inc.
[{"type":"text","content":" SAN JOSE, Calif.--(BUSINESS WIRE)--\nMomentus Inc. (NASDAQ: MNTS) (\"Momentus\" or the \"Company\"), a U.S. commercial space company that offers transportation and other in-space infrastructure services, has reached an agreement in principle to settle the consolidated securities class action lawsuits against the Company and certain of its current and former directors and former officers pending in the United States District Court for the Central District of California captioned \"In Re Stable Road Acquisition Corp. Securities Litigation, Master File No. 2:21-cv-05744\" (the “Securities Class Actions”).\n\nOn February 10, 2023, the lead plaintiff in the Securities Class Actions and the Company reached an agreement in principle to settle the Securities Class Actions for payment of $8.5 million, at least $4 million of which is expected to be funded by insurance proceeds. The agreement in principle remains subject to the satisfaction of various conditions, including negotiation and execution of a memorandum of understanding, final stipulation of settlement, notice to the proposed class, and approval by the United States District Court for the Central District of California.\n\nEarlier today, Momentus also announced a $10 million investment. The infusion of capital combined with the retirement of legacy challenges from the period before Momentus became a public company in August 2021, enables the Company to focus on future growth. The Company has also taken other recent steps to extend its cash runway.\n\nMomentus has a Share Repurchase Agreement for a final payment to the two founders of the Company of $10 million. The founders were divested from the Company in January 2021 due to U.S. Government foreign ownership concerns and the Company previously paid $40 million for this purpose. The $10 million investment, which is equivalent to the total specified in the Share Repurchase Agreement (SRA), will provide capital to the Company to meet the obligations in the SRA.\n\n“Retirement of these issues clears the way for Momentus to continue progress on its vision to provide backbone infrastructure services for the growing space economy. We’re eager to support customers in the commercial sector and civil and military government users like NASA and the U.S. Defense Department to use space in more dynamic and impactful ways,” said Momentus C...