Terran Orbtal, Inc. (LLAP) Induced Employees to Vote in Favor of its Merger and Failed to Timely Distribute Their Shares
A shareholder filed a class action on behalf of all stockholders of Terran Oribital, Inc. (NYSE: LLAP) who purchased their stock prior to March 28, 2022. Terran Orbital is a contract manufacturer, designing, building and engineering satellites primarily for the U.S. government.
According to the complaint, class members, through their employment with Legacy TOC, were induced to vote in favor of the merger via a materially false and misleading Proxy Prospectus, and were later restricted from, or otherwise unable to sell or dispose of their post-merger Terran Orbital (“New TOC”) common stock because of the misrepresentations of defendants.
In 2021, Legacy TOC and defendant Tailwind Two Acquisition Corp. (“TTAC”) agreed to merge. The merger was affected in 2022. The merger terms dictated, inter alia, that Legacy TOC common stock would be exchanged for New TOC common stock at an agreed exchange rate. After registration and issuance on March 25, 2022, New TOC shares started trading on the New York Stock Exchange under ticker symbol “LLAP.” However, the class members did not receive the New TOC shares as provided in the terms of the Merger Agreement nor as represented in the solicitation of their consents to the merger. By the time class members had access and control over their New TOC shares to sell, New TOC had lost almost half its value.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Terran Orbital. Shareholders who want to be appointed lead plaintiff for the class must file their papers by April 18, 2023. 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.