Investors using a Late Stage Management special purpose vehicle for pre-IPO SpaceX exposure discovered their shares were sold in 2024. This liquidation occurred two years before the company's June 2026 public debut.
Shareholders only realized the shares were missing after the IPO, resulting in significant lost gains. Multiple investors have filed formal complaints with the U.S. Securities and Exchange Commission.
In March, three Late Stage Management executives admitted to unrelated federal fraud charges. Those charges involved the concealment of markups and fees from investors.