NEW YORK, July 20, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against CAE Inc. (“CAE” or the “Company”) (NYSE: CAE). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether CAE and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until September 16, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired CAE securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On November 14, 2023, CAE issued a press release reporting its second quarter fiscal year 2024 results and stated that certain of the Company’s legacy contracts continued to be plagued by cost overruns. CAE revealed that, within its Defense and Security (“Defense”) segment, the Company planned to “retir[e] legacy contracts, which have been most affected by inflationary pressures” and further stated that “[w]e are firmly focused on retiring legacy contracts as soon as possible and to mitigating the cost pressures associated with them.”
On this news, CAE’s stock price fell $0.85 per share, or nearly 4%, to close at $21.07 per share on November 14, 2023.
Then, on February 14, 2024, CAE issued a press release reporting its third quarter fiscal year 2024 results and identified “eight distinct legacy contracts” that are firm, fixed-price in structure and that suffered from severe cost overruns due to supply chain disruptions, inflationary pressures, and availability of labor. According to the press release, the Company “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.” CAE further revealed that “[a]lthough [the contracts] represent only a small fraction of the current business, these contracts have disproportionately impacted overall Defense profitability.”
On this news, CAE’s stock price fell $2.01 per share, or nearly 10%, to close at $18.91 per share on February 14, 2024.
Finally, after the close of trading on May 21, 2024, 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 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, CAE’s stock price fell $1.03 per share, or more than 5%, to close at $18.80 per share on May 22, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
646-581-9980 ext. 7980