The legal action, filed in the U.S. District Court for the Western District of Texas, centers on the period between March 4, 2025, and July 15, 2026. Plaintiffs contend that while AST SpaceMobile repeatedly assured investors of its liquidity through Sarbanes-Oxley-certified reports, the company was simultaneously accumulating $3 billion in convertible senior notes. The suit highlights a significant market reaction on February 12, 2026, when shares dropped 15.17% following the pricing of a $1 billion offering.

Attorney Joseph E. Levi, representing the plaintiffs, argues that the company relied on generic risk disclosures while specific financial pressures were already materializing. The lawsuit claims that the firm omitted critical information regarding slow user adoption in the U.S. and Japan, as well as the competitive impact of the $19 billion EchoStar S-Band spectrum sale to SpaceX. Investors who purchased securities during the class period have until November 13, 2026, to file for lead plaintiff status.