CAE - Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against CAE Inc. (CAE) | Benzinga

NEW YORK, July 17, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons and entities who purchased securities of CAE Inc. ("CAE" or the "Company") (NYSE:CAE) between February 11, 2022 and May 21, 2024, inclusive (the "Class Period").

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) 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 (2) 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.

On August 10, 2022, the Company announced it had incurred "$28.9 million in unfavourable contract profit adjustments in Defense, involving two programs in the U.S." As a result, the Company's Defense segment reported an adjusted segment ...

CAE)>Full story available on Benzinga.com