U.S. SEC charges blank check firm Stable Road, space startup Momentus over misleading claims


FILE PHOTO: People exit the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo

July 13, 2021

WASHINGTON (Reuters) – The U.S. securities regulator on Tuesday said it had charged blank-check company Stable Road Acquisition Corp, its sponsor SRC-NI, space exploration company Momentus Inc and two executives for misleading claims over their planned $1.2 billion merger.

The U.S. Securities and Exchange Commission (SEC) said the companies and Stable Road Acquisition Company’s chief executive Brian Kabot had agreed to pay $8 million to resolve allegations that they misled investors about Momentus Inc.’s technology and national security risks associated with its former CEO Mikhail Kokorich.

(Reporting by Chris Prentice; Editing by Michelle Price and Franklin Paul)

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