According to the lawsuit, ASP Isotopes and its senior executives failed to disclose to investors that the Company: (1) overstated the potential effectiveness of its enrichment technology; (2) overstated the development potential of its high-assay low-enriched uranium (HALEU) facility; and (3) overstated the Company’s nuclear fuels operating segment results.

Investors learned the truth on November 26, 2024, when Fuzzy Panda Research published a report alleging that ASP Isotopes was “using old, disregarded laser enrichment technology to masquerade as a new, cutting-edge Uranium enrichment.” The report, which drew upon interviews with former employees and industry experts, cast doubt on the Company’s “proprietary” technology and characterized the Company’s timeline for building its HALEU uranium facilities as misleading to the point of being “delusional.” The report further alleged the Company had significantly overstated the significance of its agreement with TerraPower and misled investors as to the involvement of subsidiary Quantum Leap Energy in the proposed TerraPower relationship.

On this news, the Company’s stock price fell $1.80, or 23.53%, to close at $5.85 per share on November 26, 2024, on unusually heavy trading volume. The stock continued to fall on the subsequent trading date, falling $0.83 or 14.19%, to close at $5.02 per share on November 27, 2024.

Investors who purchased or acquired ASP Isotopes securities between October 30, 2024 through November 26, 2024, may no later than February 3, 2025, seek to be appointed as a lead plaintiff representative of the class.