AST SpaceMobile faces a securities class action lawsuit. Law firms are reminding investors of the upcoming deadline to seek lead-plaintiff status.
The lawsuit alleges the company made false and misleading statements about its capital needs, overstated its capital and liquidity, and exaggerated its strength in the direct-to-device satellite market. It also claims user adoption was slow in the U.S. and Japan, potentially requiring the company to fund its projects with more debt and share dilution.
Separately, ASTS shares edged higher as retail traders speculated that T-Mobile had removed the Starlink brand from its satellite-service webpage. AT&T, T-Mobile, and Verizon have formed a joint venture for satellite-based services, a move that preserves AST SpaceMobile’s existing agreements with AT&T and Verizon.