Class Action Lawsuit Filed Against CAE Inc.Class Action Lawsuit Filed Against CAE Inc. NEW YORK, July 24, 2024 – Bleichmar Fonti & Auld LLP (BFA) has filed a class action lawsuit alleging violations of federal securities laws against CAE Inc. (CAE). Affected Investors: CAE investors who purchased or acquired shares on any U.S. exchange between February 11, 2022 and May 21, 2024. Allegations: Defendants allegedly made false and misleading statements about significant cost overruns in CAE’s Defense and Security segment. The lawsuit claims these overruns stemmed from fixed-price contracts entered into before the COVID-19 pandemic. Timeline of Events: * August 10, 2022: CAE announces unfavorable contract adjustments related to fixed-price contracts, causing a 16% drop in stock price. * November 14, 2023: CAE acknowledges ongoing cost overruns in legacy contracts, leading to a 4% stock price decline. * February 14, 2024: CAE announces plans to accelerate repayment of outstanding risks related to legacy defense contracts, resulting in a 10% stock price drop. * May 21, 2024: CAE reports a substantial revaluation of its defense business, write-offs, and accelerated risk recognition, further lowering the stock price by 5%. Your Options: Affected investors may provide their details at https://www.bfalaw.com/cases/cae-inc-investigation. About Bleichmar Fonti & Auld LLP: BFA is a leading global law firm specializing in securities class action lawsuits. Past clients have benefited from settlements totaling over $900 million. Contact Information: Ross Shikowitz [email protected] 212-789-3619 Website: https://www.bfalaw.com/cases/cae-inc-investigation
NEW YORK, July 24, 2024 (GLOBE NEWSWIRE) — Bleichmar Fonti & Auld LLP (“BFA”) announces that it has filed a class action lawsuit alleging violations of the federal securities laws against CAE Inc. (“CAE” or the “Company”) (NYSE:CAE) and certain senior executives of the Company.
If you have suffered a loss on your CAE investment, send your details to https://www.bfalaw.com/cases/cae-inc-investigation.
The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CAE investors who purchased or acquired CAE shares on any exchange in the United States between February 11, 2022 and May 21, 2024, inclusive (the “Class Period”). The case is pending in the U.S. District Court for the Southern District of New York and is titled Norbert Gamache v. CAE Inc., et al.No. 1:24-cv-05360. A copy of the lawsuit can be found here: https://www.bfalaw.com/siteFiles/Cases/CAEComplaint.pdf.
What is the lawsuit about?
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements about significant cost overruns in CAE’s Defense and Security (“Defense”) segment caused by various fixed-price, long-term Defense contracts entered into prior to the COVID-19 pandemic. In fact, certain of CAE’s fixed-price Defense contracts had experienced such significant cost overruns prior to COVID that the company had to take over $720 million in cost and profit adjustments and rebase its entire Defense business.
On August 10, 2022, the Company announced $28.9 million in unfavorable contract profit adjustments related to two fixed-price contracts. On this news, CAE’s stock price fell $4.32 per share, or more than 16%, from $25.80 per share on August 9, 2022 to $21.48 per share on August 10, 2022.
However, the defendants continued to misrepresent the strength of the Defense segment. For example, the company assured investors that “[d]espite the additional volatility” of “acute near-term headwinds for the Defense sector, management has a very positive view of growth potential over a multi-year period.”
On November 14, 2023, CAE stated that certain legacy contracts were still plagued by cost overruns. CAE revealed that within its Defense segment, the company planned to “eliminate legacy contracts that have been most impacted by inflationary pressures.” On this news, CAE’s stock price fell $0.85 per share, or nearly 4%, from $21.92 per share on November 13, 2023 to $21.07 per share on November 14, 2023.
Three months later, on February 14, 2024, CAE announced that it intended to “further accelerate the repayment of outstanding program risks, primarily related to certain legacy defense contracts that we entered into prior to COVID and that have been most impacted by economic headwinds.” On this news, the price of CAE shares fell $2.01 per share, or nearly 10%, from $20.92 per share on February 13, 2024 to $18.91 per share on February 14, 2024.
Finally, CAE announced after the close of business on May 21, 2024 a “revaluation of its defense business, defense write-offs and accelerated risk recognition on Legacy Contracts.” The company stated that “CAE recorded a $568.0 million non-cash write-off of Defense goodwill,” “$90.3 million of unfavorable earnings adjustments on defense contracts resulting from accelerated risk recognition on the Legacy Contracts,” and a “$35.7 million write-off of related technology and other non-financial assets primarily related to the Legacy Contracts.” On this news, CAE’s stock price fell $1.03 per share, or more than 5%, from $19.83 per share on May 21, 2024 to $18.80 per share on May 22, 2024.
Click here if you have suffered losses: https://www.bfalaw.com/cases/cae-inc-investigation.
What can you do?
If you have invested in CAE, Inc., you may have legal recourse and we recommend that you provide your information to the company.
All representation is on a no cure no pay basis, it costs you nothing. Shareholders are not responsible for any legal costs or litigation expenses. The company will seek court approval for any costs and expenses.
You can submit your details via:
https://www.bfalaw.com/cases/cae-inc-investigation
Or contact:
Ross Shikowitz
[email protected]
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading global law firm representing plaintiffs in securities class action lawsuits and shareholder lawsuits. It was named one of the Top 5 Plaintiffs’ Law Firms for 2023 by ISS SCAS and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and Thompson Reuters. Among its recent notable successes, BFA has recovered over $900 million in equity from the board of directors of Tesla, Inc. (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, visit https://www.bfalaw.com.
https://www.bfalaw.com/cases/cae-inc-investigation
Advertisement of lawyer. Past results are no guarantee of future results.
