Astra Space, Inc. (ASTR) Misled the Investing Public About its Business Prospects
A shareholder filed a class action on behalf of purchasers of Astra Space, Inc. (NASDAQ: ASTR) securities f/k/a Holicity Inc. (NASDAQ: HOL) between February 2, 2021 and December 29, 2021, for violations of the Securities Exchange Act of 1934. Astra Space purportedly operates as an operational space launch company.
According to the complaint, on June 30, 2021, Astra Space and Holicity Inc., a special purpose acquisition company, merged. During the class period, defendants touted the Company’s ability to launch “anywhere in the world in 24 hours” and overstated the effectiveness and reliability of its designs, among other things.
On December 29, 2021, researcher Kerrisdale Capital released a report entitled “Astra Space, Inc. (ASTR): Headed for Dis-Astra,” which alleged myriad issues with the Company. The report explained that Astra cannot launch from “anywhere in the world.” In the U.S., for example, Astra can only launch from a FAA-licensed commercial spaceport approved for vertical launch. Further, the report indicated that Astra’s forecast of 300 launches per year is highly speculative for many reasons, not the least of which is lack of market demand. The report noted that Astra has had only one successful orbital test flight and examined Astra’s design failures. On this news, shares of Astra stock fell $1.10 per share, or approximately 14%, to close at $6.61 per share on December 29, 2021.
Next Steps: If you purchased shares of Astra Space, Inc. (ASTR) between February 2, 2021 and December 29, 2021, you have until April 11, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting 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.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
