Rocket Lab Investors Face Tight Deadline in Securities Fraud Case Amid Stock Plunge

Rocket Lab USA (NASDAQ: RKLB) investors who purchased shares between November 12, 2024, and February 25, 2025, now face a critical deadline: April 28, 2025, to file motions to serve as lead plaintiffs in a class action lawsuit alleging securities fraud. The case centers on claims that the company misled investors about its Neutron rocket’s launch schedule, contractual agreements, and operational delays—allegations that caused its stock to plummet nearly 10% in a single day.

The Case Against Rocket Lab

The lawsuit, filed in federal court, accuses the company of making materially false or misleading statements about its ability to meet key milestones. Among the allegations:

1. Delayed Barge Landing Tests: Rocket Lab claimed three critical barge landing tests would occur between September 2024 and March 2025. In reality, these were pushed to late 2025, with risks of further delays into early 2026.
2. Launch Pad Delays: A critical water system at the Virginia launch pad was not scheduled to be fixed until January 2026, jeopardizing the Neutron’s mid-2025 launch target.
3. Questionable Contracts: The company’s sole confirmed Neutron contract was with E-Space, a Chinese startup described as “unreliable,” and reportedly priced at a discount—a stark contrast to Rocket Lab’s public assertions of standard pricing.

On February 25, 2025, a report by Bleecker Street Research exposed these issues, triggering a sharp selloff.

The data shows a steady decline from $30 in early 2024 to $20.28 on February 25, 2025—a 32% drop over 14 months, with a sharp 9.8% plunge on the day the report was published.

Why This Matters for Investors

The lawsuit seeks to recover losses for shareholders who bought during the class period. With the April 28 lead plaintiff deadline looming, affected investors must act quickly. Even those who don’t seek lead plaintiff status can still join the class, but missing this deadline could forfeit their chance to participate in any recovery.

Law firms representing the case, including The Gross Law Firm and Glancy Prongay & Murray LLP, are urging shareholders to contact them to register their interest. These firms often handle securities class actions on a contingency basis, meaning they only collect fees if the case succeeds.

Risks for Rocket Lab

The company now faces not only financial penalties but also reputational damage. The Neutron rocket, its flagship project, is central to its long-term growth strategy. If the delays and contractual issues are proven, Rocket Lab could struggle to secure future launch contracts, further eroding investor confidence.

Conclusion: A High-Stakes Moment

The lawsuit underscores the fragility of Rocket Lab’s narrative. With its stock down 32% year-to-date and its operational timeline in question, investors must weigh the company’s ability to recover against the legal risks. The April 28 deadline is a clear inflection point: shareholders who acted quickly in similar cases, such as those involving Nikola Corporation or Theranos, often secured recoveries of 10–30% of their losses.

For Rocket Lab, the path forward is uncertain. If the allegations hold, the company may face regulatory scrutiny and lost investor trust. For now, the clock is ticking—for both the lawsuit and the stock’s prospects.

Investors holding RKLB shares through February 2025 should consult legal counsel promptly. The stakes are high, and time is running out.