As I have noted in recent posts (most recently here), a few of the many SPAC-related securities lawsuits that have been filed in the last 18 months are so are reaching the dismissal motion stage, and in at least some cases the dismissal motions are being denied, at least in part. In the latest example, the federal judge presiding over the SPAC-related securities class action lawsuit involving commercial space travel firm Momentus and Stable Road Acquisition Corp, its SPAC partner, as well as the SPAC sponsor and certain SPAC executives, has largely denied the defendants’ motion to dismiss. As discussed below, the securities suit may be unusual in that it was only filed after the SEC launched a securities enforcement action against the same entities and individuals and involving the same allegations; however, the court’s rulings nevertheless may have some implications for the many other pending SPAC-related suits.
Continue Reading Securities Suit Against SPAC and SPAC Merger Target Largely Survives Dismissal Motion