New York – September 10, 2026 -- A class action lawsuit has been filed against York Space Systems Inc. (NYSE:YSS) and several senior executives following a 10.9% single-day stock decline tied to allegations the company misrepresented the capabilities of its proprietary satellite software.

Stock fell $3.91 per share after Wolfpack Research report

Shares dropped from a closing price of $35.88 on May 11, 2026, to $31.97 on May 12, 2026, after short-seller Wolfpack Research published a report citing former employees who claimed York Space Systems launched satellites without confirming the software could perform its core mission. The report stated the company had not finished software development before launch and instead attempted to debug systems while satellites were already in orbit.

Complaint targets Pentagon-linked revenue concentration

According to the complaint, 96% of York Space Systems' fiscal 2025 revenue came from U.S. federal government contracts through the Pentagon's Space Development Agency, with the bulk tied to the SDA's Transport Layer program. Plaintiffs allege the company overstated its software capabilities while touting successful launches and its incumbent position for future Transport Layer tranches.

Case filed in Colorado federal court, deadline set for October 30

The suit, captioned Ianelli v. York Space Systems Inc. et al., No. 1:26-cv-04074, is pending in the U.S. District Court for the District of Colorado. It asserts claims under Sections 11 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, covering investors who acquired shares through the company's January 2026 IPO or during the class period. Investors have until October 30, 2026, to seek appointment as lead plaintiff. Bleichmar Fonti & Auld LLP, which filed the action, is representing shareholders on a contingency basis.