Lawsuit filed for Investors who lost money with shares of CAE Inc. (NYSE: CAE)

An investor, who purchased shares of CAE Inc. (NYSE: CAE), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by CAE Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of CAE Inc. (NYSE: CAE) have certain options and for certain investors are short and strict deadlines running. Deadline: September 16, 2024. NYSE: CAE investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Canada based CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. CAE Inc. reported that its Total Revenue rose from over 4.2 billion CAD for the 12 months period that ended on March 31, 2023, to over 4.28 billion CAD for the 12 months period that ended on March 31, 2024, and that its Net Income of 222.7 million CAD for the 12 months period that ended on March 31, 2023 turned to a Net Loss of 304 million CAD for the 12 months period that ended on March 31, 2024.

On August 10, 2022, the Company announced $28.9 million in unfavorable contract profit adjustments involving two fixed-price contracts.

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 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 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."

Shares of CAE Inc. (NYSE: CAE) declined from $25.04 per share on September 15, 2023, to as low as $17.40 per share on May 22, 2024.

The plaintiff claims that between February 11, 2022 and May 21, 2024, the defendants made materially false and misleading statements concerning significant cost overruns in CAE's Defense and Security ("Defense") segment caused by several fixed-price, long-term Defense contracts entered prior to the COVID-19 pandemic, that in truth, 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, and that the Defendants continued to make false representations regarding the strength of the Defense segment.

Those who purchased shares of CAE Inc. (NYSE: CAE) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.