Faruqi & Faruqi, LLP investigates claims on behalf of CAE investors

James (Josh) Wilson, securities litigation partner at Faruqi & Faruqi, LLP, encourages investors who have suffered losses beyond 100,000 US dollars In CAE to contact him directly to discuss their options

If you have suffered losses that 100,000 US dollars in CAE between 11 February 2022 And May 21, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi Partner Josh Wilson direct at 877-247-4292 or 212-983-9330 (Extension 1310). For more information you can also click here: www.faruqilaw.com/CAE.

NEW YORK, July 18, 2024 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against CAE Inc. (“CAE” or the “Company”) (NYSE: CAE) and reminds investors of the 16 September 2024 Deadline to serve as lead plaintiff in a federal securities class action lawsuit filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in new York, Pennsylvania, California And GeorgiaThe firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint claims that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) several of CAE’s fixed-price contracts in the defense sector prior to COVID had resulted in significant cost overruns due to supply chain and labor issues – as the segment was significantly impacted by the pandemic – which reduced the segment’s profit and operating margin; and (2) CAE failed to reduce fixed costs and achieve sufficient levels of operational efficiency, particularly with respect to these contracts, requiring a realignment of the defense business and significant related costs.

At 10 August 2022the company announced $28.9 million in unfavorable contract profit adjustments on two fixed-price contracts. Following this news, the price of CAE shares fell $4.32 per share or more than 16% of 25,80 € per share on 9 August 2022To $21.48 per share on 10 August 2022.

At 14 November 2023CAE said that certain legacy contracts continued to be plagued by cost overruns. CAE announced that in the defense segment, the company planned to “eliminate legacy contracts that were most affected by inflationary pressures.” Following this news, CAE’s share price fell $0.85 per share or almost 4% of 21,92 € per share on 13 November 2023To $21.07 per share on 14 November 2023.

Three months later, on February 14, 2024CAE announced that it is “seeking to further accelerate the repayment of outstanding program risks, primarily related to certain legacy defense contracts we entered into prior to COVID that were most impacted by economic headwinds.” Following this news, CAE’s share price fell 2.01 USD per share or almost 10% of 20,92 € per share on February 13, 2024To 18,91 € per share on February 14, 2024.

Finally, after the close of trading on May 21, 2024CAE announced a “reassessment of its defense business, defense impairments (and) accelerated risk identification on legacy contracts.” The company stated that “CAE is undertaking a 568.0 million US dollars non-cash impairment of goodwill in the defence sector” “90.3 million US dollars in unfavourable profit adjustments in defence contracts as a result of accelerated risk recognition in the old contracts” and a “35.7 million US dollars Impairment of related technology and other non-financial assets primarily related to the legacy contracts.”

Following this news, the price of CAE shares fell $1.03 per share or more than 5% of $19.83 per share on May 21, 2024To 18,80 € per share on May 22, 2024.

The court-appointed lead plaintiff will be the investor with the greatest financial interest in the relief sought by the class, who is reasonable and typical of class members, and who will direct and oversee the litigation on behalf of the putative class. Any member of the putative class may, through counsel of his or her choosing, ask the court to serve as lead plaintiff, or he or she may choose to do nothing and remain an absent class member. Your ability to share in any relief will not be affected by your decision to serve as lead plaintiff.

Faruqi & Faruqi, LLP also encourages anyone with information regarding CAE’s conduct, including whistleblowers, former employees, shareholders and others, to contact the company.

Learn more about the CAE Class action lawsuit, go to www.faruqilaw.com/CAE or Call Faruqi & Faruqi Partner Josh Wilson direct at 877-247-4292 or 212-983-9330 (Extension 1310).

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