AST SpaceMobile faces lawsuit over Starlink Mobile rivalry

AST SpaceMobile is facing a class action lawsuit from shareholder Edward Hunter, who accuses the company of violating federal securities laws. The 39-page complaint filed in a US district court alleges that the satellite-to-phone company made materially false and misleading claims about its business and overstated the strength of its competitive position against SpaceX's Starlink Mobile.

The lawsuit claims AST's market standing came under pressure after SpaceX acquired radio spectrum from Boost Mobile's parent EchoStar in September 2025 to bolster Starlink Mobile. The complaint also alleges AST misled the market regarding its rising capital needs, growing debt load, and resulting share dilution. While AST aims to provide over 150 Mbps per coverage cell for partners AT&T and Verizon, SpaceX plans to offer 150 Mbps per user next year and compete directly against major US mobile operators.

Hunter purchased 18 shares in November 2025 and June 2026 at around $74. AST shares surged to $133 in May before falling to $58, leading Hunter to claim he bought stock at artificially inflated prices. The lawsuit seeks damages for investors who bought shares between March 4, 2025 and July 15, 2026. AST did not immediately respond to a request for comment.

The legal action follows operational hurdles for the Texas-based company. In July, AST postponed its commercial launch from late this year to early 2027 after Blue Origin's New Glenn rocket exploded during a ground test. Although AST targeted operating at least 45 satellites by the end of 2026, it currently has 13 BlueBirds in orbit, including its prototype BlueWalker 3 satellite.