Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In CAE To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $100,000 in CAE between February 11, 2022 and May 21, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/CAE.
NEW YORK, July 26, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against CAE Inc. (“CAE” or the “Company”) (NYSE: CAE) and reminds investors of the September 16, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) several of CAE's pre-COVID fixed-price Defense contracts had incurred severe cost overruns due to supply chain and labor issues - as the segment was significantly impacted by the pandemic - which dented the segment's profit and operating margin; and (2) CAE failed to successfully reduce hard costs and achieve a sufficient level of operational efficiency, particularly with respect to such contracts, necessitating a re-baselining of the Defense business and significant associated charges.
On August 10, 2022, the Company announced $28.9 million in unfavorable contract profit adjustments involving two fixed-price contracts. On this news, the price of CAE stock declined $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.
On November 14, 2023, CAE stated that certain legacy contracts continued to be plagued by cost overruns. CAE revealed that, within the Defense segment, the Company planned to “retir[e] legacy contracts, which have been most affected by inflationary pressures.” On this news, the price of CAE stock declined $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 “sought to further accelerate the retirement of outstanding program risks, mainly associated with certain legacy Defense contracts that we entered into pre-COVID and have been most impacted by economic headwinds.” On this news, the price of CAE stock declined $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, after the close of trading on May 21, 2024, CAE announced a “re-baselining of its Defense business, Defense impairments, [and] accelerated risk recognition on Legacy Contracts.” The Company stated that “CAE has recorded a $568.0 million non-cash impairment of Defense goodwill,” “$90.3 million in unfavorable Defense contract profit adjustments as a result of accelerated risk recognition on the Legacy Contracts,” and a “$35.7 million impairment of related technology and other non-financial assets which are principally related to the Legacy Contracts.”
On this news, 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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding CAE’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the CAE class action, go to www.faruqilaw.com/CAE or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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