Astra Space Targeted Over Take-Private Buyout by Founder Group

Shareholders are suing Astra Space Inc. over concerns that its planned take-private sale to a consortium led by its founders would shortchange public investors in the struggling space startup.

The buyout for $0.50 a share—less than Astra’s trading price when it was signed—appears to undervalue the company, likely because it was negotiated by board members facing another case that the sale to co-founders Chris Kemp and Adam London would effectively end, according to the court complaint filed Monday.

The lawsuit in Delaware’s Chancery Court stops short of alleging outright wrongdoing. It seeks internal documents from Astra under a law giving ...