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NEW YORK, May 11, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AST SpaceMobile, Inc. ("AST" or the "Company") (NASDAQ: ASTS). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether AST and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On April 30, 2021, post-market, AST stated in a U.S. Securities and Exchange Commission ("SEC") filing that certain of its previously issued financial statements would need to be restated and should no longer be relied upon. Specifically, AST noted that "on April 12, 2021, the Acting Chief Accountant and Acting Director of the Division of Corporation Finance of the Securities and Exchange Commission . . . released the Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (the 'Staff Statement')" which "sets forth the conclusion of the SEC's Office of the Chief Accountant that certain provisions included in the warrant agreements entered into by many special purpose acquisition companies require such warrants to be accounted for as liabilities measured at fair value, rather than as equity securities, with changes in fair value during each financial reporting period reported in earnings." Accordingly, "[o]n April 29, 2021, the Audit Committee of the Board of Directors of the Company, in response to the Staff Statement, and after discussion with its independent registered public accounting firm, Marcum LLP, its valuation firm and its legal advisors, concluded that the Company's previously issued audited financial statements for the year ended December 31, 2020 and for the period from May 28, 2019 (inception) through December 31, 2019 and the Company's unaudited condensed financial statements for the period from May 28, 2019 (inception) through September 30, 2019, the three months ended September 30, 2019, the three months ended March 31, 2020 and the three months ended and year-to-date periods ended June 30, 2020 and September 30, 2020 . . . should be restated to reflect the impact of the guidance in the Staff Statement and accordingly, should no longer be relied upon."