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 is facing a class-action lawsuit alleging federal securities fraud due to delayed Q3 2021 earnings and an inability to finalize financial statements, which caused its stock price to drop significantly.
Redwire's CEO and CFO are named as defendants in the lawsuit, filed on behalf of investors who purchased securities between August and November 2021.
The company is a key partner in prominent space initiatives, including Blue Origin's NASA-selected Orbital Reef commercial space station, and the lawsuit's potential impact on its participation remains unclear.

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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.