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 proposed Orbital Reef space station, is facing a class-action lawsuit alleging federal securities fraud.
The lawsuit claims Redwire's delayed Q3 2021 earnings release and inability to finalize financial statements led to a significant drop in its stock price, with its CEO and CFO named as defendants.
This legal challenge comes after Redwire recently went public via a SPAC merger and despite its involvement in high-profile space projects.

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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.