The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Florida on behalf of those who acquired Terran Orbital Corporation (“Terran” or the “Company”) (NYSE: LLAP) securities during the period of August 15, 2023 through August 14, 2024, inclusive (“the Class Period”). Investors have until November 26, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

[Click here to learn more about the class action]

On March 1, 2024, Lockheed made a non-binding offer to acquire all of Terran’s outstanding common stock for $1.00 per share in cash (the “Initial Buyout Offer”). On May 2, 2024, Lockheed disclosed in a filing with the U.S. Securities and Exchange Commission (“SEC”) that, “[o]n April 30, 2024, [it] notified [Terran] that it was withdrawing the [Initial Buyout Offer].” On this news, the price of Terran shares declined by $0.22 per share, or approximately 17.05%, from $1.29 on May 2, 2024, to close at $1.07 per share on May 3, 2024.

On August 12, 2024, Terran filed its quarterly report for the second quarter of 2024 with the SEC, revealing that the Company had only $14.6 million in cash and debt of approximately $300 million as of June 30, 2024, as well as that it had removed the Rivada Contract from its backlog, thereby reducing the Company’s total backlog by over 88% from $2.7 billion to a mere $312.7 million as of June 30, 2024. On this news, the price of Terran shares declined by $0.06 per share, or approximately 8.45%, to close at $0.65 per share on August 12, 2024.

Then, on August 15, 2024, Terran and Lockheed issued a joint press release announcing that they had entered into a definitive agreement whereby Lockheed would acquire Terran for $0.25 per share in cash. The sale price was well below the (i) $0.40 per share price at which the Company’s stock had closed the day prior, and (ii) the $1.00 per share price that Lockheed had offered in its Initial Buyout Offer. On this news, Terran’s stock price fell by $0.157 per share, or approximately 39.3%, to close at $0.243 per share on August 15, 2024.

The lawsuit alleges that Terran made false and/or misleading statements and/or failed to disclose that: (i) it would take much longer than the Company had represented for it to convert its contracts with its customers (collectively, “Customer Contracts”) into revenue and free cash flow; (ii) Terran did not have adequate liquidity to operate its business while waiting for the Customer Contracts to generate revenue and free cash flow; and (iii) Terran had concealed the scope and severity of its dire financial situation.

If you purchased or otherwise acquired Terran securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

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