Bloomberg Law
March 23, 2023, 9:13 PM

Momentus SPAC Backers Accused of Hiding Disastrous Deal’s Flaws

Mike Leonard
Mike Leonard
Legal Reporter

A Momentus Inc. investor sued backers of its blank-check merger with a shell company, claiming they deliberately engineered a catastrophic transaction because the deal’s structure gave insiders a windfall.

The lawsuit targets Stable Road Capital LLC affiliates that sponsored the combination between a “special purpose acquisition company” and Momentus, a space infrastructure business founded by “a Russian national with opaque ties to Russian military and intelligence agencies.” Several Defense Department ex-officials who served under former President Donald Trump—investigated for years over his alleged ties to Russia—joined Momentus after leaving the government.

The proposed class action, filed in Delaware’s Chancery ...

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