AST SpaceMobile Shares Fall 6% as Lawsuit Raises Funding Risks

AST SpaceMobile shares fell 6.13% Thursday after a securities class action alleged the company understated funding needs, liquidity risks and competition, putting its financing disclosures at issue.

AST SpaceMobile (ASTS) closed at $56.93 after opening at $59.25 and trading between $55.96 and $60.30. About 19.2 million shares changed hands, with trading ending at 4 p.m. ET (2000 UTC).

Filed Sept. 14 in federal court in Texas, the lawsuit covers investors who purchased AST SpaceMobile securities from March 4, 2025, through July 15, 2026. The complaint names founder and CEO Abel Avellan, Chief Financial Officer and Chief Legal Officer Andrew M. Johnson, and the company as defendants.

Plaintiffs allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5. The plaintiffs contend that AST SpaceMobile concealed growing financing demands, the prospect of additional borrowing or equity dilution, weak customer uptake in the U.S. and Japan, and competitive pressure from SpaceX’s Starlink direct-to-device service.

The complaint also points to convertible-note offerings as potential sources of dilution. In July, AST SpaceMobile issued $1.15 billion of 1.625% convertible senior notes due 2034, including $150 million purchased through an option. The company reported net proceeds of $1.131 billion after offering costs and used about $111.4 million for capped-call transactions.

AST SpaceMobile had $2.723 billion in cash, cash equivalents and restricted cash as of June 30, including $434.6 million of restricted cash. During the first six months of 2026, it used $145.2 million in operating activities and $979.7 million in investing activities.

Second-quarter revenue was $31.52 million, while net loss attributable to common stockholders reached $230.9 million. AST SpaceMobile said its cash and cash equivalents were sufficient for anticipated requirements over the following 12 months, while warning that actual results could differ materially from its forecasts.

A court has not ruled on the allegations. The proposed deadline for investors to seek lead-plaintiff status is Nov. 13, 2026.