Astra Space, Inc. - ASTR f/k/a Holicity Inc. - HOL Securities Fraud Class Action

Astra investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than April 11, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired Astra Space, Inc. (“Astra”) (NASDAQ: ASTR) f/k/a Holicity Inc. (“Holicity”) (NASDAQ: HOL) securities between February 2, 2021 and December 29, 2021, both dates inclusive (the “Class Period”).

Case Background:
Astra operates as an operational space launch company. On June 30, 2021, Astra and Holicity, a special purpose acquisition company, merged.

The Class Period commences on February 2, 2021, when Holicity filed a Form 8-K, which attached a press release dated February 2, 2021 entitled “Astra to become the first publicly traded space launch company on NASDAQ via merger with Holicity” which announced the merger with Astra. The February 2, 2021 8-K also attached an investor presentation which included slides touting Astra’s ability to “[l]aunch anywhere in the world in 24 hours”, its timeline, and its potential market.

The truth regarding Astra emerged on December 29, 2021, when market researcher Kerrisdale Capital released a report entitled “Astra Space, Inc (ASTR): Headed for Dis-Astra” (the Kerrisdale Report”), which alleged myriad issues with Astra.  Specifically, the Kerrisdale Report stated that “[m]anagement habitually describes Astra as having the flexibility to launch from ‘anywhere in the world,’ which is simply not true” reasoning that “[in] the US, Astra 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.”  The Kerrisdale Report also stated that Astra’s “main competitors will soon be launching larger 1,000kg+ payload rockets while Astra has yet to overcome developmental hurdles necessary to successfully launch even a single satellite into any of the emerging broadband mega-constellations.”  Further, the Kerrisdale Report stated that “[c]onversations with an individual familiar with Astra’s rocket design and manufacturing suggest investors may have to endure an uncomfortably high rate of failure as the company ramps to a targeted monthly launch cadence in 2022.”  Finally, the Kerrisdale Report stated that “[w]hile others in the industry like Rocket Lab are developing well-suited, best-in-class technology, enabling a variety of TAM-expanding missions, Astra is settling for suboptimal acquired technology with only niche applications.”

Following this news, Astra’s share price fell $1.10 per share, or approximately 14%, to close at $6.61 per share on December 29, 2021.

The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (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, the defendants’ public statements were materially false and/or misleading at all relevant times.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  James Maro, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.