According to the SEC, Stable Road CEO Brian Kabot and Momentus repeatedly told investors that it had "successfully tested" its propulsion technology in space, when its only in-space test had failed to achieve its primary objectives.
The U.S. Securities and Exchange Commission said the companies and Stable Road Acquisition Company Chief Executive Brian Kabot agreed to pay $8 million to resolve allegations that they misled investors about Momentus' technology and national security risks associated with its former CEO Mikhail Kokorich.
According to the SEC, Kokorich and Momentus, an early-stage space transportation company, repeatedly told investors that it had "successfully tested" its propulsion technology in space, when its only in-space test had failed to achieve its primary objectives or demonstrate the technology's commercial viability.
The two companies said last year they expected to merge in a $1.2 billion transaction, which they revised down to $700 million last month.
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