Redwire Space Hit with Federal Lawsuit

Redwire Space, a partner in Blue Origin’s proposed orbiting space station, is the target of a class-action lawsuit alleging federal securities fraud.

FLYING Staff

Tuesday, December 28, 2021 at 06:30 PM ET

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The goal of Orbital Reef is to create a “mixed-use business park” in space. Credit: Blue Origin

Key Takeaways:

Redwire Space, a partner in Blue Origin’s Orbital Reef space station project, is facing a class-action lawsuit alleging federal securities fraud.
The lawsuit claims Redwire's delayed Q3 2021 earnings release and subsequent inability to finalize financial statements led to significant drops in its stock price.
Redwire's CEO and CFO are named as defendants in the suit, which was filed shortly after the company went public via a SPAC merger in September.

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Redwire Space (NYSE:RDW), a partner in Blue Origin’s proposed orbiting space station, is the target of a class-action lawsuit alleging federal securities fraud, according to court documents.

The lawsuit against the Florida-based company accuses Redwire of delaying release of its third quarter earnings in November 2021, which resulted in a 16 percent drop in its stock price “on unusually heavy trading volume,” court documents said.