A lawsuit was filed on behalf of investors in Astra Space, Inc. (NASDAQ:ASTR) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 02/24/2022 -- An investor, who purchased shares of Astra Space, Inc. (NASDAQ: ASTR), filed a lawsuit i over alleged violations of Federal Securities Laws by Astra Space, Inc. f/k/a Holicity, Inc. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Astra Space, Inc. (NASDAQ: ASTR) have certain options and for certain investors are short and strict deadlines running. Deadline: April 11, 2022. NASDAQ: ASTR investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Alameda, CA based Astra Space, Inc. operates as a space launch company. On December 29, 2021, market researcher Kerrisdale Capital released a report entitled, "Astra Space, Inc. (ASTR): Headed for Dis-Astra," which alleged myriad issues with Astra Space. Among other issues, the report: (1) questioned Astra Space's ability to launch from anywhere: "In the US, Astra [Space] can only launch from an FAA-licensed commercial spaceport approved for vertical launch. There are only 5 such sites (plus SpaceX's private Boca Chica spaceport) located in the U.S."; (2) questioned Astra Space's addressable market: "Astra [Space]'s forecast calls for 300 launches per year by 2025, a whopping 10x more than SpaceX achieved in 2021. Management markets this exceptionally aspirational goal (which we view as pure fantasy) in a bid to spread its expensive Bay Area manufacturing costs over enough rockets in order to turn a profit."; (3) questioned Astra Space's designs and reliability: "At the current stage of Astra [Space]'s development, our source believes the risk of failure is as high as 1 in 2 launches."; and (4) questioned Astra Space's plans for diversification and its broadband constellation plan: "While others in the industry like Rocket Lab are developing well-suited, best-in-class technology, enabling a variety of TAM-expanding missions, Astra [Space] is settling for suboptimal acquired technology with only niche applications."
Shares of Astra Space, Inc. (NASDAQ: ASTR) declined from $11.32 per share on November 30, 2021, to as low as $3.10 per share on February 14, 2022.
The plaintiff claims that between February 2, 2021 and December 29, 2021, the defendants made false and/or misleading statements and/or failed to disclose: (1) Astra cannot launch "anywhere"; (2) Astra significantly overstated its addressable market; (3) Astra overstated the effectiveness of its designs and reliability; (4) Astra significantly overstated its plans for diversification and its broadband constellation plan; and (5) as a result, defendants' public statements were materially false and/or misleading at all relevant times.
Those who purchased shares of Astra Space, Inc. (NASDAQ: ASTR) have certain options and should contact the Shareholders Foundation.
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