A class action lawsuit was filed against Rocket Lab USA Inc. (RKLB) by Levi & Korsinsky on February 27, 2025. The plaintiffs (shareholders) alleged that they bought RKLB stock at artificially inflated prices between November 12, 2024 and February 25, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought Rocket Lab USA stock during that period can click here to learn about joining the lawsuit.
Rocket Lab USA is a space exploration company that provides end-to-end services, including rocket launches, spacecraft solutions, satellite components, and on-orbit management. Rocket Lab USA operates “advanced manufacturing and mission operations centers” in Virginia, New Mexico, Colorado, Maryland, Toronto, and New Zealand.
The company’s false claims about the development of its launch pad and the resulting delay in launching of Rocket Lab’s Neutron rockets are at the heart of the current complaint.
Rocket Lab USA’s Misleading Claims
According to the lawsuit, RKLB and two of its senior officers (Individual Defendants) repeatedly made false and misleading public statements throughout the Class Period. Particularly, they are accused of omitting truthful information about delays affecting plans for three barge landing tests, delays affecting preparation of the launch pad, and ancillary issues, from SEC filings and related material.
For instance, during the Class Period, the company mentioned that it had signed significant launch service agreements for multiple launches of its Neutron rockets with an unnamed commercial satellite constellation customer.
Furthermore, in a quarterly report released on November 12, 2024, the company reiterated that it had signed a launch service agreement for two dedicated Neutron launches with an unnamed commercial satellite constellation customer. Additionally, the company mentioned that it saw strong potential to scale its launch operations, citing steady growth in both its build rate and launch rate.
However, subsequent events (discussed below) revealed that Rocket Lab USA allegedly misled investors about the progress of its launch pad construction, particularly owing to a critical potable water problem, which had significantly delayed all its operations.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the business practices and prospects during the Class Period. Importantly, the defendants are accused of misleading investors about the pace of development of the launch pad and the agreements for Neutron rocket launches with unnamed customers.
The information became clear on February 25, 2025, when Bleecker Street issued a report alleging Rocket Lab USA of materially misleading investors about the possibility of its Neutron rocket launch in mid-2025. Additionally, the report disclosed that the company’s plans for three barge landing tests were postponed to a window beginning in September 2025 and could potentially extend to March 2026. The original launch was scheduled to take place between September 2024 and March 2025.
Finally, the report revealed that delays in preparing the launch pad was due to a potable water problem, which was not expected to be fixed until January 2026 and could delay it even further. Following the report, RKLB stock fell by 9.8%.
To conclude, the defendants allegedly misled investors about the prospects of its Neutron rocket launches, which were delayed because of the company’s own issues. Owing to these challenges, RKLB stock has lost 12% so far this year.
