Overview

A class action lawsuit has been filed against AST SpaceMobile, Inc. (“SpaceMobile” or the “Company”) (NASDAQ: ASTS) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The SpaceMobile lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired SpaceMobile securities between November 14, 2023 and April 1, 2024, both dates inclusive, (the “Class Period”), and investors have until June 17, 2024 to seek appointment as lead plaintiff of the SpaceMobile class action lawsuit.

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.  The Company 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 and 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, on unusually heavy trading volume.  The lawsuit alleges that Defendants, throughout the Class Period, made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.  Specifically, Defendants failed to disclose to investors that: (1) the production of the Company’s five Block 1 BlueBird satellites had been negatively impacted by two suppliers of key subsystems; (2) a result, the Company had not substantially completed the production of the Block 1 BlueBird satellites; (3) as a result, the Company’s five Block 1 BlueBird satellites were not on track to launch in the first quarter of 2024; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

*          *         *

If you purchased or otherwise acquired SpaceMobile securities between November 14, 2023 and April 1, 2024, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the SpaceMobile lawsuit is June 17, 2024.