Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against ASP Isotopes (ASPI)

/EIN News/ -- NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the securities of ASP Isotopes Inc. (“ASP Isotopes” or the “Company”) (NASDAQ: ASPI) between October 30, 2024 and November 26, 2024, both dates inclusive (the “Class Period”).

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. The Complaint alleges specifically that Defendants failed to disclose to investors: (1) the Company overstated the potential effectiveness of its enrichment technology; (2) the Company overstated the development potential of its high assay low-enriched uranium facility; (3) the Company overstated the Company’s nuclear fuels operating segment results; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

The Complaint alleges that on November 26, 2024, at approximately 10:00 a.m. Eastern Standard Time, market research firm Fuzzy Panda Research published a report (“Report”) which alleged that the Company is “using old, disregarded laser enrichment technology to masquerade as a new, cutting-edge Uranium enrichment.” The Complaint further alleges that the Report quoted a former employee of Klydon (the company ASP Isotopes purchased its “proprietary” technology from) as stating scientists “did not think it would work on Uranium.” The Complaint also alleges that the Report revealed a series of experts interviewed stated the Company’s reported cost estimates and timeline for building its HALEU uranium facilities was misleading to the point of being “delusional.” The Complaint further alleges that the Report claimed the Company had significantly overstated the significance of its agreement with TerraPower, which was only a “non-binding” memorandum of understanding entered into to “put pressure on [TerraPower’s] real suppliers.” In addition, the Complaint alleges the Report quoted a former TerraPower executive as stating that ASP Isotopes was “missing the manufacturing; They are missing the processes as well; They still have to develop the HALEU…the most important part.” The Complaint also alleges the Report revealed the Company’s subsidiary, Quantum Leap Energy, which operates its nuclear fuels segment and to which the Company assigned the TerraPower memoranda of understanding, was completely absent from its registered South African address. The Complaint alleged the Report stated there were “zero signs” of any presence of Quantum Leap Energy and “security guards and neighboring business about them all told us they had never heard of the companies.”

On this news, according to the Complaint, the Company’s stock price fell $1.80 per share from approximately $7.65 per share, or a drop of 23.53%, to close at $5.85 per share on November 26, 2024, on unusually heavy trading volume.

Investors who purchased or otherwise acquired shares of ASP Isotopes should contact the Firm prior to the February 3, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.