A securities class action has been filed in the USDC — S.D.N.Y. against CAE Inc. (CAE) (“CAE” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired CAE common stock between February 11, 2022 and May 21, 2024, both dates inclusive (the “Class Period”).
CAE is a technology company that offers software-based simulation training and critical operations support solutions. The Company principally operates in two business segments: (i) Civil Aviation and (ii) Defense and Security (“Defense”). CAE’s Defense segment provides independent training and simulation solutions for global defense and security forces.
The claim arises on May 21, 2024, when CAE issued a press release announcing a “re-baselining of its Defense business, Defense impairments, accelerated risk recognition on Legacy Contracts and appointment of Nick Leontidis as COO[.]”
The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements concerning significant cost overruns in CAE’s Defense and Security (“Defense”) segment caused by several fixed-price, long-term Defense contracts entered prior to the COVID-19 pandemic. In truth, certain of CAE’s pre-COVID fixed-price Defense contracts had experienced such significant cost overruns that the Company needed to take over $720 million in charges and profit adjustments and “re-baselin[e]” its entire Defense business.
As a result, the price of CAE stock declined $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.
If you purchased CAE common stock during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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