Rocket Lab Leaders Sued by Investor Over Launch Delay Report (1)

Rocket Lab USA Inc. executives and board members hid delays to the testing timeline for its reusable, medium-lift launch vehicle before a short-seller accusation prompted a February stock drop, a shareholder derivative lawsuit said.

Share prices fell 9.8% after Bleecker Street Research alleged the company deceived shareholders about the launch of its Neutron rocket Feb. 25, said Jeffrey Nagle’s complaint filed in the US District Court for the Central District of California Thursday. It was the stock’s worst session in more than six weeks, according to data compiled by Bloomberg.

Top brass hurt the company’s reputation and financial health by ...