LOS ANGELES, Oct. 27, 2026 (GLOBE NEWSWIRE) — The Portnoy Law Firm notifies investors in AST SpaceMobile, Inc. (NASDAQ: ASTS) that a securities class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired AST common stock between March 4, 2025 and July 15, 2026, inclusive (the ‘Class Period’). Find out if you qualify to recover your per-share losses by choosing to join the class action and submit your trade details. Investors who suffered financial losses have until November 13, 2026 to seek appointment as lead plaintiff. Shareholders should contact Lesley Portnoy via e-mail (Lesley@portnoylaw.com or call (310) 692-8883) or visit http://portnoylaw.com/ast-spacemobile-inc to learn more information and discuss their legal rights.
Please visit our website for more information on how to participate in this class action.
AST SpaceMobile, along with its subsidiaries, develops and manufactures the BlueBird satellite constellation. According to a class action lawsuit, telecommunications firm EchoStar Corporation agreed in September 2025 to sell its AWS-4 and H-block spectrum licenses to SpaceX—a deal known as the EchoStar Transaction. The suit alleges this arrangement included a long-term agreement giving EchoStar’s Boost Mobile customers access to Starlink’s direct-to-cellular (D2C) services. The complaint asserts that throughout the Class Period, company executives made misleading statements and concealed crucial financial and operational realities. Specifically, the lawsuit claims defendants misrepresented the strength of AST SpaceMobile’s capital and liquidity positions, obscured the likelihood of frequent and large-scale debt and share dilution, overblown the durability of its market standing before and after the EchoStar Transaction, and hid lagging user growth across key markets in the United States and Japan.
A sequence of market actions and public disclosures triggered notable drops in the company’s Class A common stock price. On September 8, 2025, UBS downgraded the stock from “Buy” to “Neutral” and slashed its price target from $62.00 to $43.00, warning that the EchoStar Transaction strengthened Starlink’s competitive stance; shares fell more than 9%. On October 21, 2025, AST SpaceMobile announced a private offering of $850 million in convertible senior notes due 2036 to fund constellation deployment, later upsizing and pricing the offering at $1.0 billion that same day, causing the stock to drop over 9% further. Subsequently, on January 6, 2026, Scotiabank downgraded the company to “Sell” with a “Sector Underperform” rating, explicitly referencing intense competition from Starlink and sluggish user uptake in the U.S. and Japan, which prompted an additional drop of over 12%.
The stock faced further downward pressure following subsequent capital raises. On February 11 and 12, 2026, AST SpaceMobile announced and priced another private offering of $1.0 billion in convertible senior notes due 2036 at an initial conversion price of approximately $116.30 per share, sending the stock down more than 15%. Finally, on July 15, 2026, the firm revealed and priced yet another $1.0 billion offering of 1.625% convertible senior notes due 2034 at a conversion price of roughly $79.57 per share, intended for growth initiatives and vertical integration despite having no binding strategic deals in place. This final disclosure resulted in the stock plunging more than 17%.
WHY PORTNOY LAW FIRM
The Portnoy Law Firm represents investors in complex securities class action litigation and shareholder rights matters across the nation. Founded by Lesley Portnoy, the firm’s attorneys have recovered billions of dollars for aggrieved institutional and retail investors. The firm leverages extensive legal expertise and sophisticated financial forensic capabilities to hold public corporations accountable for corporate wrongdoing and misrepresentation.
Lead Plaintiff Deadline: Investors who suffered losses on AST Spacemobile, Inc. stock during the Class Period have until November 13, 2026 to seek appointment as lead plaintiff.
Frequently Asked Questions About the AST Lawsuit
Q: What is the AST lead plaintiff deadline?
A: The deadline to apply for lead plaintiff appointment is November 13, 2026. This deadline applies strictly to investors seeking to serve as lead plaintiff representing the class. Class members who do not apply may still participate in any eventual financial recovery as absent class members without taking any action at this time.
Q: How much did AST stock drop and on what dates?
A: Following a series of negative market disclosures and analyst downgrades, AST SpaceMobile’s Class A common stock experienced several sharp single-day declines across the Class Period: on September 9, 2025, the stock fell $3.86 per share, or 9.47%, to close at $36.91 following a UBS downgrade; on October 22, 2025, it dropped $7.26 per share, or 9.24%, to close at $71.35 following a $1.0 billion convertible notes offering; on January 7, 2026, the stock fell $11.76 per share, or 12.06%, to close at $85.73 following a Scotiabank downgrade; on February 12, 2026, it fell $14.70 per share, or 15.17%, to close at $82.22 following another convertible notes announcement; and on July 16, 2026, the stock plummeted $11.30 per share, or 17.04%, to close at $55.01 following yet another $1.0 billion convertible notes offering.
Q: What specific misstatements does the AST lawsuit allege?
A: The lawsuit claims that AST SpaceMobile and its executives misled investors by painting an overly rosy picture of the company’s financial and competitive standing. Specifically, the complaint alleges that executives overstated the strength and durability of the company’s competitive position in the satellite direct-to-cellular market. It also alleges that they exaggerated how sufficient their cash and liquidity position was, while failing to disclose that growing capital needs would lead to heavy debt loads and frequent, large-scale stock dilution. Furthermore, the company allegedly hid the fact that it was experiencing slow user adoption in key regions like the U.S. and Japan.
Q: What do AST investors need to do right now?
A: Investors who purchased ASTS common stock during the Class Period (March 4, 2025 through July 15, 2026) should gather their trade confirmation slips or brokerage transaction logs showing purchase dates, number of shares, and prices paid. You may submit your trade details to Portnoy Law Firm here for a free, no-obligation evaluation of your potential loss recovery. No immediate legal action is required to remain an eligible absent class member.
Q: What is a lead plaintiff and why does it matter?
A: A lead plaintiff is a court-appointed class member who acts on behalf of all other class members in directing the litigation. The lead plaintiff is typically the investor or group of investors that makes a motion with the largest financial interest in the relief sought. While serving as lead plaintiff does not increase an investor’s individual financial recovery compared to other class members, it gives the investor direct authority to select lead counsel and oversee the prosecution of the lawsuit.
Q: Does the lead plaintiff receive any type of compensation?
A: Yes, in many cases, Courts award the lead plaintiff an additional amount of money to compensate the lead plaintiff for their participation in the case.
Q: Does it cost anything to participate in this case as a lead plaintiff?
A: A lead plaintiff does not pay any fees or expenses out of pocket. Our firm works on a contingency basis, and will collect any fees or expenses directly from a future recovery.
Q: What if I already sold my AST shares — can I still recover losses?
A: Yes. Eligibility to participate in a securities class action recovery depends on whether you purchased or acquired ASTS common stock during the Class Period (March 4, 2025 to July 15, 2026) and suffered an economic loss. Investors who sold their shares prior to or after the public disclosures may still be eligible to recover damages based on the artificial inflation present in the stock at the time of purchase.
Q: How long will the AST lawsuit take to resolve?
A: Securities class action lawsuits typically take between two and four years from initial filing to full resolution. The exact timeline depends on court scheduling, motion practice (such as motions to dismiss), pre-trial discovery, and potential settlement negotiations or trial proceedings.
Q: Can I choose a different law firm to represent me?
A: Yes. Investors have the absolute right to retain any legal counsel of their choice. When multiple class action complaints are filed, the court will consolidate the actions and appoint a lead plaintiff and lead counsel. You may choose to be represented by Portnoy Law Firm, retain separate counsel, or remain an absent class member represented by court-appointed lead counsel.
CONTACT INFORMATION
Portnoy Law Firm
Lesley Portnoy, Esq.
Email: lesley@portnoylaw.com / info@portnoylaw.com
Telephone: (310) 692-8883
Attorney Advertising. Prior results do not guarantee a similar outcome.
Media gallery
