Overview

A class action lawsuit has been filed against Terran Orbital Corporation (“Terran” or the “Company”) (NYSE: LLAP) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws.  The Terran class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Terran securities between August 15, 2023, and August 14, 2024, both dates inclusive (the “Class Period”).  Investors have until November 26, 2024, to seek appointment as lead plaintiff in the Terran class action lawsuit.

Terran manufactures and sells satellites for aerospace and defense industries in the United States and internationally.  Historically, Lockheed Martin Corporation (“Lockheed”) has been one of Terran’s most significant stakeholders and customers.  As of October 31, 2022, Lockheed owned approximately 9.5% of Terran’s stock, and by May 2, 2024, Lockheed owned an approximate 28.3% stake in the Company.  Likewise, as of December 21, 2021, contracts with Lockheed represented approximately 50% of Terran’s consolidated revenues, whereas Lockheed comprised approximately 70% of Terran’s consolidated revenues during the three months ended June 30, 2024.

The Terran class action lawsuit alleges that, throughout the Class Period, Terran’s executives made materially false and misleading statements regarding the Company’s business, financial condition, and prospects.  Specifically, Defendants failed to disclose that it would take significantly longer than anticipated to convert their customer contracts, including a $2.4 billion contract with Rivada Space Networks GmbH (“Rivada”), into revenue and free cash flow.  Furthermore, Terran misrepresented its liquidity position, concealing the severity of its financial challenges.

As alleged in the lawsuit, in early 2024, Lockheed made an initial non-binding offer to acquire Terran for $1.00 per share, but later withdrew the offer after uncovering Terran’s dire financial situation.  Following this withdrawal and a series of negative financial disclosures, including the removal of the Rivada contract from its backlog, Terran’s stock price plummeted.

Then, in August 2024, Terran announced a sale to Lockheed for $0.25 per share, a steep decline from the initial offer.  Subsequent filings revealed that Terran had been facing severe liquidity issues and was nearing bankruptcy, facts that had been concealed from investors during the Class Period.  As a result, shareholders, including the plaintiff, suffered significant financial losses due to the precipitous decline in Terran’s stock value.

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If you purchased or otherwise acquired Terran securities between August 15, 2023, and August 14, 2024, both dates inclusive, 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 [email protected]. 

The deadline to apply to the Court to serve as a lead plaintiff in the Terran class action lawsuit is November 26, 2024.