On May 11, 2026, at approximately 10 AM EST, Wolfpack Research published a report, stating that it “suspect[s]” that the Pentagon’s decision to “halt Tranche 3 funding and destroy the SDA . . . may have been due to York’s failure to live up to their own hype.” Among other things, the report stated that the Company’s “main pitch to customers and investors” was “that they [are] operating on a modular platform” but multiple former employees claimed that York “sent satellites into space without even knowing if the software was fit to accomplish its basic mission.” That is, the report claimed that “York’s satellites simply did not function as expected because the company did not finish developing the software for these satellites before launching them” and waited until they were in orbit to fully debug them.
On this news, YSS stock price fell approximately $7 during intraday trading on May 11, 2026, thereby injuring investors.
By the commencement of this action, the Company’s stock was trading as low as $9.33 per share, an over 70% decline from the $34 per share IPO price.
The complaint filed in this class action alleges that 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. Specifically, Defendants failed to disclose to investors that: (1) that York’s onboard mission and payload software was not fully functional before satellites were launched; (2) that this ongoing trend presented a risk to the Company’s contracts with the SDA deceived the SDA with false advertising to win its contracts, cut corners, and delivered satellites whose mission-critical-software was not completed; and (3) 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.
