This case was last updated from PACER on 08/05/2021 at 06:33:37 (UTC).

Drew Depoy v. Stable Road Acquisition Corp. et al

Case Summary

On August 4, 2021, Drew DePoy (“Plaintiff”), individually and on behalf of all others similarly situated, represented by Jennifer Pafiti of Pomerantz LLP, filed a civil action against Stable Road Acquisition Corp. (“Stable Road” or the “Company”), Momentus Inc. (“Momentus”), SRC-NI Holdings, LLC (“Sponsor”), Brian Kabot (“Kabot”), James Norris (“Norris”), and Mikhail Kokorich (“Kokorich”) (collectively, the “Defendants”), seeking damages with interest, along with costs, expenses, and counsel fees, for allegedly issuing a materially false and misleading registration statement in violation of federal securities laws. This case was filed in U.S. District Court in the Central District of California with Judges John F. Walter and Paul L. Abrams presiding. 

 

In its complaint, the Plaintiff alleged that, “In November 2019, the Sponsor and Defendants Kabot and Norris took Stable Road public via an initial public offering (the “IPO”). While Stable Road did not identify any target companies at the time of the IPO, the IPO offering materials stated that the Company planned to pursue an acquisition focused in the cannabis sector. IPO offering materials claimed that the Sponsor and Stable Road management, including Defendants Kabot and Norris, would “[c]onduct rigorous due diligence” of any target possibilities, “including a review of company-specific information as well as an analysis of the overall industry and competitive landscape.”

 

The Plaintiff further alleged that, “The Individual Defendants, because of their positions of control and authority as officers and/or directors of the Company and Momentus, were able to, and did, control the content of the various SEC filings, press releases, and other public statements pertaining to the Company and Momentus during the Class Period. Each Individual Defendant was provided with copies of the documents alleged herein to be misleading before or shortly after their issuance and/or had the ability and/or opportunity to prevent their issuance or cause them to be corrected. Accordingly, each Individual Defendant is responsible for the accuracy of the public statements detailed herein and is, therefore, primarily liable for the representations contained therein.”

 

The Plaintiff lists out two claims for relief. The first claim is against all Defendants  for the alleged violation of §10(b) of the Exchange Act and Rule l0b-5 promulgated thereunder, and the second claim is against the individual Defendants and Sponsor for alleged violation of §20(a) of the Exchange Act. The Plaintiff claimed that the registration statement was materially false and misleading when made because it misrepresented and failed to disclose the adverse facts about Momentus’ business, operations, and prospects, and Stable Road’s due diligence activities in connection with the Merger, which were known to Defendants or recklessly disregarded by them.

 

In its prayer for relief, the Plaintiff has requested that the Court designate Plaintiff as Lead Plaintiff and declare this action to be a class action properly maintained pursuant to Rule 23 of the Federal Rules of Civil Procedure, and award Plaintiff and other members of the Class damages together with interest thereon and their costs and expenses of this litigation, including reasonable attorneys’ fees, expert fees, and other costs and disbursements, and such other and further relief as the Court deems just and proper under the circumstances.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    2:21-CV-06287

  • Filing Date:

    08/04/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Courthouse:

    California Central District

Judge Details

Presiding Judge

John F. Walter

Referral Judge

Paul L. Abrams

 

Party Details

Plaintiff

Drew Depoy

Defendants

Stable Road Acquisition Corp.

Momentus Inc.

SRC-NI Holdings, LLC

Brian Kabot

James Norris

Mikhail Kokorich

Attorney/Law Firm Details

Plaintiff Attorney

Jennifer Pafiti

Attorney at Pomerantz LLP

1100 Glendon Avenue 15Th Floor

Los Angeles, CA 90024

 

Court Documents

#10

(#10) STANDING ORDER by Judge John F. Walter. READ THIS ORDER CAREFULLY. IT CONTROLS THE CASE AND DIFFERS IN SOME RESPECTS FROM THE LOCAL RULES. This action has been assigned to the calendar of Judge John F. Walter. (iv) (Entered: 08/04/2021)

#9

(#9) NOTICE OF PRO HAC VICE APPLICATION DUE for Non-Resident Attorney Peretz Bronstein. A document recently filed in this case lists you as an out-of-state attorney of record. However, the Court has not been able to locate any record that you are admitted to the Bar of this Court, and you have not filed an application to appear Pro Hac Vice in this case. Accordingly, within 5 business days of the date of this notice, you must either (1) have your local counsel file an application to appear Pro Hac Vice (Form G-64) and pay the applicable fee, or (2) complete the next section of this form and return it to the court at cacd_attyadm@cacd.uscourts.gov. You have been removed as counsel of record from the docket in this case, and you will not be added back to the docket until your Pro Hac Vice status has been resolved. (esa) (Entered: 08/04/2021)

#8

(#8) 21 DAY Summons issued re Complaint #1 as to defendants Brian Kabot, Mikhail Kokorich, Momentus Inc., James Norris, SRC-NI Holdings, LLC, Stable Road Acquisition Corp.. (esa) (Entered: 08/04/2021)

#7

(#7) Notice to Counsel Re Consent to Proceed Before a United States Magistrate Judge. (esa) (Entered: 08/04/2021)

#6

(#6) NOTICE TO PARTIES OF COURT-DIRECTED ADR PROGRAM filed. (esa) (Entered: 08/04/2021)

#5

(#5) NOTICE OF ASSIGNMENT to District Judge John F. Walter and Magistrate Judge Paul L. Abrams. (esa) (Entered: 08/04/2021)

#4

(#4) NOTICE of Interested Parties filed by Plaintiff Drew Depoy, (Pafiti, Jennifer) (Entered: 08/04/2021)

#3

(#3) Request for Clerk to Issue Summons on Complaint (Attorney Civil Case Opening) #1 filed by Plaintiff Drew Depoy. (Pafiti, Jennifer) (Entered: 08/04/2021)

#2

(#2) CIVIL COVER SHEET filed by Plaintiff Drew Depoy. (Pafiti, Jennifer) (Entered: 08/04/2021)

#1

(#1) COMPLAINT Receipt No: ACACDC-31747712 - Fee: $402, filed by Plaintiff Drew Depoy. (Attorney Jennifer Pafiti added to party Drew Depoy(pty:pla))(Pafiti, Jennifer) (Entered: 08/04/2021)

 

Docket Entries

  • 08/04/2021
  • View Court Documents
  • Docket(#10) STANDING ORDER by Judge John F. Walter. READ THIS ORDER CAREFULLY. IT CONTROLS THE CASE AND DIFFERS IN SOME RESPECTS FROM THE LOCAL RULES. This action has been assigned to the calendar of Judge John F. Walter. (iv) (Entered: 08/04/2021)

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  • 08/04/2021
  • View Court Documents
  • Docket(#9) NOTICE OF PRO HAC VICE APPLICATION DUE for Non-Resident Attorney Peretz Bronstein. A document recently filed in this case lists you as an out-of-state attorney of record. However, the Court has not been able to locate any record that you are admitted to the Bar of this Court, and you have not filed an application to appear Pro Hac Vice in this case. Accordingly, within 5 business days of the date of this notice, you must either (1) have your local counsel file an application to appear Pro Hac Vice (Form G-64) and pay the applicable fee, or (2) complete the next section of this form and return it to the court at cacd_attyadm@cacd.uscourts.gov. You have been removed as counsel of record from the docket in this case, and you will not be added back to the docket until your Pro Hac Vice status has been resolved. (esa) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#8) 21 DAY Summons issued re Complaint #1 as to defendants Brian Kabot, Mikhail Kokorich, Momentus Inc., James Norris, SRC-NI Holdings, LLC, Stable Road Acquisition Corp.. (esa) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#7) Notice to Counsel Re Consent to Proceed Before a United States Magistrate Judge. (esa) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#6) NOTICE TO PARTIES OF COURT-DIRECTED ADR PROGRAM filed. (esa) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#5) NOTICE OF ASSIGNMENT to District Judge John F. Walter and Magistrate Judge Paul L. Abrams. (esa) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#4) NOTICE of Interested Parties filed by Plaintiff Drew Depoy, (Pafiti, Jennifer) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#3) Request for Clerk to Issue Summons on Complaint (Attorney Civil Case Opening) #1 filed by Plaintiff Drew Depoy. (Pafiti, Jennifer) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#2) CIVIL COVER SHEET filed by Plaintiff Drew Depoy. (Pafiti, Jennifer) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#1) COMPLAINT Receipt No: ACACDC-31747712 - Fee: $402, filed by Plaintiff Drew Depoy. (Attorney Jennifer Pafiti added to party Drew Depoy(pty:pla))(Pafiti, Jennifer) (Entered: 08/04/2021)

    Read MoreRead Less
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