#United States #New York #Class Action #Mynaric AG #Pomerantz Law

Pomerantz Law Firm Launches Class Action Lawsuit Against Mynaric AG

In a significant legal development, the Pomerantz Law Firm has filed a class action lawsuit against Mynaric AG, whose stock is traded on NASDAQ under the ticker MYNA. The case, which has been registered in the Eastern District of New York, concerns shareholders who suffered financial losses during a specified period, from June 20, 2024, to October 7, 2024.

The lawsuit represents all individuals and entities who purchased or acquired Mynaric securities within this time frame, and it aims to address alleged violations of federal securities laws. The action is seeking reparations for damages incurred due to misleading statements made by the company’s executives, wanting to recover losses suffered as a direct result of these alleged transgressions.

Mynaric AG is known for its development and manufacturing of state-of-the-art laser communication technologies, catering to the aerospace industry for both government and commercial applications. Among their notable products is the CONDOR series, designed for satellite-to-satellite communication, a pioneering venture into the aerospace communication network sector.

The complaint alleges that throughout the Class Period, Mynaric's leadership issued materially false and misleading statements regarding the company's business operations and future prospects. Specifically, it is said that they failed to disclose critical issues that were negatively impacting production, including lower-than-expected yields and supply shortages associated with essential components necessary for their flagship product, the CONDOR Mk3.

As a result of these undisclosed challenges, the company's financial outlook suffered significantly. On August 20, 2024, Mynaric lowered its revenue projections for the fiscal year to a staggering EUR 16 million to EUR 24 million, a massive drop from previous forecasts of EUR 50 million to EUR 70 million. Remarkably, the operational forecast also deteriorated, with expected losses for the fiscal year escalating from EUR 40 million to figures ranging between EUR 50 million to EUR 55 million, marking a striking decline.

This news triggered a drastic reaction in the market; on the very day the downgrade was announced, Mynaric's American Depository Shares plummeted 55.9%, reflecting investors' lost confidence in the company's performance and leadership. The CEO Mustafa Veziroglu and the Chief Financial Officer Stefan Berndt-von Bülow's recent departures added to the uncertainty surrounding the corporation, leading to another drop in share prices shortly thereafter.

Moreover, on October 8, 2024, Mynaric revealed that it received a deficiency notification from Nasdaq, indicated that the company was no longer in compliance with minimum market capitalization requirements, further exacerbating shareholder worries about the company's viability and future.

Pomerantz LLP is recognized as a leading firm in class action litigation, particularly in the realms of securities and corporate misconduct. The firm has a storied history dating back over eight decades, during which it has advocated for the rights of defrauded investors and worked to reclaim billions in compensatory damages.

Shareholders impacted by Mynaric's operational setbacks and misrepresentations are encouraged to act swiftly, as there is a deadline of December 30, 2024, to apply for lead plaintiff status in this class action. Those interested can access further details on the lawsuit via the Pomerantz website or can reach out to the firm directly for assistance.

As the legal proceedings unfold, the outcome may serve as a pivotal moment for Mynaric AG and its disciplinary measures for transparency and ethical governance moving forward.