ironnet -- spac securities fraud (settled)
published: February 22, 2026 •
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case overview
| Case | Grad v. IronNet, Inc., No. 22-cv-00449 |
| Court | U.S. District Court, Eastern District of Virginia |
| Class Period | September 14, 2021 — December 15, 2021 |
| Settlement | $6.625 million |
| Status | Settled (preliminary approval March 2025) |
allegations
ironnet, founded by former nsa director keith alexander, went public via spac merger with lgl systems acquisition corp. in august 2021 at a $1.2 billion valuation. the complaint alleged the company materially overstated its business and financial prospects and could not predict the timing of significant customer opportunities that constituted a substantial portion of its fy2022 guidance.
the company filed for chapter 11 bankruptcy in june 2023 and effectively shut down by october 2024.
sources
last updated: february 22, 2026