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LLAP.US
id: 2096

Terran Orbital ($LLAP) Lockheed Martin Merger Disclosure Case

Attorneys review the case details to decide whether to proceed with a class action.
C.D. California
Court
8:26-cv-01587
Case number
09/18/2024
Class period Start
10/30/2024
Class period End
08/17/2026
Lead Plaintiff motion deadline
  • $LLAP investors filed a claim against Terran Orbital for allegedly withholding key information about Lockheed Martin’s control, Terran Orbital’s sale process, and CEO Marc Bell’s $6 million transaction bonus.
  • After Terran Orbital removed Rivada from the backlog and agreed to a $0.25-per-share acquisition, $LLAP fell 38.5% on August 14, 2024.
  • $LLAP investors can join this case to be notified about potential recovery.
Case Details:

Between September 18, 2024, and October 30, 2024, Terran Orbital told investors that its board unanimously supported Lockheed Martin’s $0.25-per-share acquisition offer. Executives emphasized that the deal was fair and in shareholders’ best interests, despite Lockheed Martin having offered $1.00 per share several months earlier.

However, during this period, investors allege Lockheed Martin used its power as Terran Orbital’s major customer, large stockholder, and key lender to pressure the company into accepting a distressed sale price. Terran Orbital allegedly failed to disclose the full extent of Lockheed Martin’s control over Terran Orbital’s financing and operations, key details about board meetings, valuation work, and changed projections used in the sale process, and when discussions began about Marc Bell’s $6 million bonus tied to closing the Lockheed Martin deal.

Then, on August 12, 2024, Terran Orbital removed the $2.7 billion Rivada contract from backlog, reducing reported backlog from $2.7 billion to $312.7 million, and $LLAP fell 29%.

Additional revelations followed on August 15, 2024, when Terran Orbital agreed to be acquired by Lockheed Martin for $0.25 per share.

By August 14, 2024, shares had dropped from $0.65 to $0.40, representing a total decline of 38.5% over the correction period.

Based on these events, $LLAP investors filed a claim against Terran Orbital, alleging the company:
  • It withheld key facts about the Lockheed Martin deal.
  • It failed to explain Lockheed Martin’s pressure, the board’s changed position, and the CEO's bonus tied to the sale.
  • It caused investors to vote without important information about the true value and fairness of the deal.
Investors argue that Terran Orbital misled the market about the Lockheed Martin acquisition process, causing losses when the truth emerged.
Case Type
US Securities Class Action
Case Status
Attorney Investigation
Alleged Offence
Misleading Statements
Financial Misrepresentation
Fraud
Failure to Disclose
Negligence
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
08/12/2024
Filing date
06/18/2026
Lead Plaintiff Deadline
08/17/2026

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