Momentus settles consolidated securities class action lawsuits for $8.5M

Momentus has reached an agreement in principle to settle the consolidated securities class action lawsuits against the company and certain of its current and former directors and former officers pending in the United States District Court for the Central District of California captioned "In Re Stable Road Acquisition Corp. Securities Litigation, Master File No. 2:21-cv-05744". On February 10, the lead plaintiff in the Securities Class Actions and the company reached an agreement in principle to settle the Securities Class Actions for payment of $8.5M, at least $4M of which is expected to be funded by insurance proceeds. The agreement in principle remains subject to the satisfaction of various conditions, including negotiation and execution of a memorandum of understanding, final stipulation of settlement, notice to the proposed class, and approval by the United States District Court for the Central District of California. Momentus has a share repurchase agreement for a final payment to the two founders of the Company of $10M. The founders were divested from the company in January 2021 due to U.S. Government foreign ownership concerns and the company previously paid $40M for this purpose. The $10M investment, which is equivalent to the total specified in the share repurchase agreement, will provide capital to the company to meet the obligations in the SRA.