SAN DIEGO, July 17, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired CAE Inc. (NYSE: CAE) securities between February 11, 2022 and May 21, 2024. CAE is a technology company that offers software-based simulation training and critical operations support solutions.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that CAE Inc. (CAE) Misled Investors Regarding its Business Prospects
The complaint alleges that during the class period defendants made misrepresentations concerning significant cost overruns in CAE’s Defense segment caused by several fixed-price, long-term Defense contracts entered into prior to the COVID-19 pandemic. Specifically, defendant Branco stated the Company had reduced its “hard costs,” drove “added staffing efficiencies,” and that CAE was “focus[ed] on internally making us stronger and contributing to margin expansion.” The Company also stated that “[n]otwithstanding the ongoing challenges posed by the pandemic, CAE is already delivering stronger financial performance . . . and optimizing its position[.]” Despite this and other positive statements, the complaint alleges that 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.
Plaintiff alleges that 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, 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.
What Now: You may be eligible to participate in the class action against CAE Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by September 10, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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