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CAE.US
id: 1291
CAE (CAE) Financial Issues Case
S.D. New York
Court1:24-cv-05360
Case number02/11/2022
Class period Start05/21/2024
Class period End09/16/2024
Lead Plaintiff motion deadline- $CAE stockholder filed a claim against CAE for misleding about cost overruns in the Defense segment from pre-COVID contracts.
- After disappointing financial results on August 10, 2022, $CAE fell by 16%.
- CAE investors can join this case to be notified about potential recovery.
Case Details:
On August 10, 2022, CAE reported a $28.9M loss in its first quarter fiscal 2023 results due to issues with two U.S. defense contracts. The losses were caused by delays, unmet customer requirements, staffing shortages, and supply chain problems.
On this news, $CAE fell by 16% on the same day.
Then, on November 14, 2023, CAE reported ongoing cost overruns in some legacy contracts during its second quarter fiscal 2024 results.
CAE plans to retire these inflation-affected contracts and focus on reducing cost pressures. After this news, $CAE dropped by 4%.
On February 14, 2024, CAE reported severe cost overruns in eight fixed-price legacy contracts due to supply chain issues, inflation, and labor shortages.
CAE plans to retire these contracts, which have significantly hurt profitability despite being a small part of the business.
On this news, $CAE fell by nearly 10%.
Then, on May 21, 2024, CAE announced a re-baselining of its Defense business and appointed Nick Leontidis as COO.
CAE reported a $568M Defense goodwill impairment, $90.3M in legacy contract losses, and a $35.7M impairment of related assets.
On this news, $CAE fell by 5% the next day.
Based on these events, a $CAE stockholder filed a claim against CAE and its leaders, stating they misled investors about cost overruns in the Defense segment from pre-COVID contracts.
Case Status
Voluntary Dismissed
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05/21/2024
Filing date
07/16/2024
Lead Plaintiff Deadline
09/16/2024
Judge
Jennifer L. Rochon