Firefly Aerospace Facing Class Action Over Misleading Alpha Rocket Claims

A class action lawsuit was filed against Firefly Aerospace (FLY) on November 11, 2025.

The federal securities class action alleges that plaintiffs acquired Firefly common stock pursuant and/or traceable to the company’s initial public offering (IPO) conducted on or about August 7, 2025 and/or  between August 7, 2025 and September 29, 2025.

The plaintiffs are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged negligence or misconduct during those times.

To learn whether you may be eligible for a recovery under this class action, click here.

Firefly is a space and defense technology company. It allows government and commercial customers to “launch, land, and operate in space – anywhere, anytime.” Firefly also says that ongoing advances in its  launch, lunar, and in-space services will allow it to provide “regular, rapid, and reliable access to space.” Specifically, the Company claims that these advances will facilitate access to space for the defense, space exploration, and commercial space markets.

According to the complaint, however – the Alpha – one of the Company’s “flagship launch vehicles” has a troubled history. In particular, the complaint notes that four of the Alpha’s six attempted flights were unsuccessful. In each case, the rocket failed to obtain its planned orbit, or exploded “within minutes of launch,” the complaint states.

The Company’s claims about the Alpha rocket are at the crux of the current complaint.

Its share price has had a tough 2025, falling around 50% in the year-to-date – see above.

Misleading Claims

The complaint alleges negligent preparation of the IPO Offering Documents. As a result, they contained untrue statements of important facts, but lacked corrective statements and legally required disclosures.

Firefly and four of its senior executives and/or employees are also accused of deceiving investors by lying and withholding important information about its business practices and compliance policies during the Class Period.

Specifically, they are accused of omitting truthful information about the operational readiness and commercial viability of its Alpha rocket program, along with ancillary issues, from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Firefly stock to trade at artificially inflated prices during the time in question.

Following some initial disclosures on September 22, 2025, the final blow, according to the plaintiffs, came on September 29, 2025. That’s when Firefly disclosed that “during testing at Firefly’s facility in Briggs, Texas, the first stage of Firefly’s Alpha Flight 7 rocket experienced an event that resulted in a loss of the stage.”

Plaintiffs’ Arguments

In a statement posted on its website during the Class Period, Firefly stated: “Firefly’s Alpha rocket is equipped to launch more than 1,000 kg to low Earth orbit for commercial, civil, and national security missions. The flight-proven vehicle is designed to support regular, rapid, and reliable launches with direct, on demand deliveries when and where customers need to fly.”

Next, in an August 26, 2025 announcement concerning the FAA’s approval of further Alpha rocket flights, following a failed launch,  the company said: “The company conducted a thorough investigation with the FAA and in parallel assembled an Independent Review Board of multiple government agencies, customers, and industry experts. Fortunately, the corrective actions are straight forward: increase thermal protection system thickness on Stage 1 and reduce angle of attack during key phases of the flight. Corrective actions have already been implemented.”

In the same announcement, its Chief Alpha Engineer stated: “Following all the lessons learned and corrective actions implemented, we were able to further increase Alpha’s reliability.”

The deadline to file for lead plaintiff in this class action is January 12, 2026.