SAN DIEGO, April 26, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired AST SpaceMobile Inc. (NASDAQ: ASTS) securities between November 14, 2023 and April 1, 2024. SpaceMobile, together with its subsidiaries, claims to develop and provide access to a space-based cellular broadband network for smartphones in the United States distributed through a constellation of Low Earth Orbit satellites.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating the Allegations that AST SpaceMobile, Inc. (ASTS) Misled Investors Regarding its Launch Schedule
According to the complaint, SpaceMobile purports to be in the advanced stages of assembling and testing its first generation of commercial BlueBird satellites, the “Block 1 BlueBird” satellites, in advance of launching its space-based cellular broadband network. Following the planned launch and deployment of five Block 1 BlueBird satellites, the Company intends to initiate limited, noncontinuous cellular service in targeted geographical areas, including in the United States, in order to generate revenue.
On April 1, 2024, after the market closed, SpaceMobile issued a press release disclosing that production of five Block 1 BlueBird satellites had been “impacted by two suppliers, leading to delays in integration and testing.” As a result, these five satellites were expected to be transported to the launch site between July or August 2024, later than the previously expected launch in the first quarter of 2024. On this news, SpaceMobile’s stock price fell $0.62, or 23.6%, to close at $2.01 per share on April 2, 2024.
Plaintiff contends that during the class period defendants failed to disclose to investors that: (1) production of the Company’s five Block 1 BlueBird satellites had been negatively impacted by two suppliers of key subsystems; (2) thus, the Company had not substantially completed the production of the Block 1 BlueBird satellites; and (3) therefore, the Company’s five Block 1 BlueBird satellites were not on track to launch in the first quarter of 2024.
What Now: You may be eligible to participate in the class action against AST SpaceMobile, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by June 17, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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