SAN DIEGO, Aug. 14, 2024 (GLOBE NEWSWIRE) — Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of CAE Inc. (NYSE: CAE) stock on an exchange in the United States between February 11, 2022 and May 21, 2024, all dates inclusive (the “Class Period”), have until September 16, 2024 to seek appointment as lead plaintiff of the CAE class action lawsuit. Captioned Gamache v. CAE Inc., No. 24-cv-05360 (S.D.N.Y.), the CAE class action lawsuit charges CAE as well as certain of CAE’s top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the CAE class action lawsuit, please provide your information here:
https://www.rgrdlaw.com/cases-cae-inc-class-acton-lawsuit-cae.html
You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the CAE class action lawsuit must be filed with the court no later than September 16, 2024.
CASE ALLEGATIONS: CAE is a technology company that offers software-based simulation training and critical operations support solutions.
The CAE class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) 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 (ii) 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.
The CAE class action lawsuit further alleges that on August 10, 2022, CAE announced it had incurred “$28.9 million in unfavourable contract profit adjustments in Defense, involving two programs in the U.S.” As a result, CAE’s Defense segment reported an adjusted segment operating loss of $21.2 million, compared to an adjusted segment operating income of $23.7 million in the first quarter of the prior year, according to the complaint. On this news, the price of CAE stock fell more than 16%, according to the CAE class action lawsuit.
Then, on November 14, 2023, the CAE class action lawsuit further alleges that CAE announced that within the Defense segment, CAE planned to “retir[e] legacy contracts, which have been most affected by inflationary pressures.” CAE further stated that “[i]nflationary pressures on legacy contracts, while finite, remain the most significant factor contributing to the current suboptimal margin performance of the business” and 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, the price of CAE stock fell nearly 4%, according to the complaint.
The CAE class action lawsuit further alleges that on February 14, 2024, CAE revealed 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.” The complaint further alleges that CAE also revealed that there were “eight distinct legacy contracts” and that “[a]lthough [the contracts] represent only a small fraction of the current business, these contracts have disproportionately impacted overall Defense profitability” and that “[f]or the third quarter of fiscal 2024, the ongoing execution of Legacy Contracts had a negative impact of approximately two percentage points on the Defense adjusted segment operating income margin.” On this news, the price of CAE stock fell nearly 10%, according to the complaint.
Finally, on May 21, 2024, the CAE class action lawsuit further alleges that CAE announced a “re-baselining of its Defense business, Defense impairments, accelerated risk recognition on Legacy Contracts and appointment of Nick Leontidis as COO[.]” According to the complaint, CAE revealed that “[i]n the fourth quarter of fiscal 2024, CAE has recorded a $568.0 million non-cash impairment of Defense goodwill and $90.3 million in unfavorable Defense contract profit adjustments as a result of accelerated risk recognition on the Legacy Contracts” and also “recorded 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 fell more than 5%, according to the CAE class action lawsuit.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired CAE stock on an exchange in the United States during the Class Period to seek appointment as lead plaintiff in the CAE class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the CAE class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the CAE class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the CAE class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud cases. Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors. We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
https://www.rgrdlaw.com/services-litigation-securities-fraud.html
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Contact:
Robbins Geller Rudman & Dowd LLP
J.C. Sanchez, Jennifer N. Caringal
655 W. Broadway, Suite 1900, San Diego, CA 92101
800-449-4900
info@rgrdlaw.com
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