Robbins LLP reminds shareholders

SAN DIEGO, July 23, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all persons and entities who purchased or otherwise acquired securities of CAE Inc. (NYSE: CAE) between February 11, 2022 and May 21, 2024. CAE is a technology company that provides software-based simulation training and solutions to support critical operations.

For further information please send a form, E-mail Attorney Aaron Dumas, Jr., or call us at (800) 350-6003.

The accusations: Robbins LLP investigates allegations that CAE Inc. (CAE) misled investors about its business prospects

The lawsuit alleges that during the Class Period, defendants made false statements about significant cost overruns in CAE’s defense segment caused by several long-term, fixed-price defense contracts entered into before the COVID-19 pandemic. Specifically, defendant Branco stated that the company had reduced its “hard costs,” “increased staffing efficiencies,” and that CAE was “focused on making ourselves stronger internally and helping to improve margins.” The company also stated that “despite the ongoing challenges posed by the pandemic, CAE is already delivering stronger financial performance… and optimizing its position.” Despite these and other positive statements, the lawsuit alleges that some of CAE’s pre-COVID fixed-price defense contracts experienced such significant cost overruns that the company had to take over $720 million in fee and profit adjustments and “realign” its entire defense business.

The plaintiff alleges that on May 21, 2024, CAE issued a press release announcing a “realignment of its defense business, defense impairments, accelerated risk recognition on legacy contracts, and the appointment of Nick Leontidis as COO(.)” The company stated that “CAE recorded a non-cash defense goodwill impairment of $568.0 million,” “unfavorable defense contract profit adjustments of $90.3 million as a result of accelerated risk recognition on the legacy contracts,” and “an impairment of related technology and other non-financial assets primarily related to the legacy contracts of $35.7 million.” On this news, CAE stock price fell $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 CAE Inc. class action lawsuit. Shareholders who wish to serve as lead plaintiff for the class action lawsuit must file their motions with the Court by September 10, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible to receive compensation. If you choose not to take action, you may remain an absent class member. For more information, click here Here.

Representation is on a contingency basis. Shareholders pay neither fees nor expenses.

About Robbins LLP: Some law firms issuing press releases on this matter do not litigate securities class actions; Robbins LLP does. As a recognized leader in shareholder litigation, the attorneys and staff of Robbins LLP Since 2002, we have been committed to helping shareholders recover losses, improve corporate governance, and hold corporate leaders accountable for wrongdoing. Since our founding, we have recovered over $1 billion for our shareholders.

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