Investors sue AST SpaceMobile for alleged securities fraud and false market claims

Investor Edward Hunter has launched a federal class action in Texas, charging AST SpaceMobile, its founder Abel Avellan, and CFO Andy Johnson with securities fraud. The suit claims the company falsely portrayed its competitiveness in the emerging direct-to-device satellite communications sector and exaggerated its partnerships with major telecoms such as AT&T and Verizon. After a March 2025 press release boasting a strong market outlook, the firm faced a downgrade from UBS and a sell advisory from Scotiabank, citing SpaceX's aggressive expansion after its $17 billion spectrum purchase from EchoStar.

These events coincided with a steep drop in AST's stock, which fell from a May peak of $133 to roughly $58 per share. Hunter alleges that the company’s misleading statements and aggressive bond offerings caused significant losses for shareholders. The complaint demands that a jury determine liability and award damages under the Securities Exchange Act.