News Page
Published April 7, 2025
Rocket Lab USA’s stock price had a crash landing after shocking allegations revealed the Company’s Neutron system wasn’t ready for take-off. Irate investors saw their stars fizzle out and then dumped their shares, causing Rocket Lab’s stock price plummeting 25% in just a day. Some investors have filed a class-action to recover their losses.
In November 2024, Rocket Labs boasted to investors about “significant progress” it made on “Neutron,” a space vehicle launcher designed to be reusable and more cost efficient. The Company even claimed Neutron was set for a “mid-2025 launch." Rocket Labs further claimed it already landed a customer and contracted multiple launches using Neutron. But, the lawsuit says all those claims were hot air.
Investors learned the truth in February 2025 when Bleecker Street Research published a report showing Rocket Labs wasn't close to launching Neutron in 2025. In fact, the contract was made at a major discount with an “unreliable start up.”
Stunned investors quickly sold off their shares, causing Rocket Lab's stock price to freefall. Now, some of those investors are joining the class-action.