Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Aug. 28, 2024 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises CAE Inc. (“CAE ” or the “Company”) (NYSE: CAE) investors of a class action representing investors that bought securities between February 11, 2022 and May 21, 2024, inclusive (the “Class Period”). CAE investors have until September 16, 2024 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On November 14, 2023, CAE issued a press release detailing its second-quarter fiscal year 2024 results, noting that some of the company’s legacy contracts continued to experience significant cost overruns. CAE disclosed that within its Defense and Security (“Defense”) segment, the company intended to “retire legacy contracts most impacted by inflationary pressures” and emphasized that they were “focused on retiring these contracts as quickly as possible and mitigating associated cost pressures.”
Following this announcement, CAE’s stock price dropped $0.85 per share, nearly 4%, closing at $21.07 per share on November 14, 2023.
On February 14, 2024, CAE released another press statement regarding its third-quarter fiscal year 2024 results, identifying “eight distinct legacy contracts” that were firm, fixed-price agreements suffering severe cost overruns due to supply chain disruptions, inflation, and labor shortages. The company indicated that it was “accelerating the retirement of outstanding program risks, primarily linked to certain legacy Defense contracts established before COVID-19 and most affected by economic challenges.” CAE also acknowledged that “[although these contracts represent a small portion of the current business, they have disproportionately impacted overall Defense profitability.”
This news led to a $2.01 per share decline in CAE’s stock price, nearly 10%, closing at $18.91 per share on February 14, 2024.
Finally, after trading closed 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 the appointment of Nick Leontidis as COO.” The company revealed that it had recorded a $568.0 million non-cash impairment of Defense goodwill, “$90.3 million in unfavorable Defense contract profit adjustments due to accelerated risk recognition on the Legacy Contracts,” and a “$35.7 million impairment of related technology and other non-financial assets principally tied to the Legacy Contracts.”
As a result, CAE’s stock price fell $1.03 per share, over 5%, closing at $18.80 per share on May 22, 2024.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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