NEW YORK, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of CAE Inc. (: CAE), MacroGenics, Inc. ( MGNX), Vicor Corporation ( VICR), and American Airlines Group Inc. ( AAL). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
CAE Inc. (: CAE)
Class Period: February 11, 2022 and May 21, 2024
Lead Plaintiff Deadline: September 16, 2024
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 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%.
Then, on November 14, 2023, the Company announced that within the Defense segment, the Company 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%.
Then, on February 14, 2024, the Company 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%.
Finally, on May 21, 2024, the Company 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, the Company 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%.
For more information on the CAE class action go to: https://bespc.com/cases/CAE
MacroGenics, Inc. ( MGNX)
Class Period: March 7, 2024 - May 9, 2024
Lead Plaintiff Deadline: September 24, 2024
On May 9, 2024, MacroGenics announced in a press release that a total of five fatal outcomes had occurred in its TAMARACK Phase 2 study of vobramitamab duocarmazine in patients with metastatic castration resistant prostate cancer. On this news, the price of MacroGenics shares declined by $11.36 per share, or approximately 77.4%, from $14.67 per share on May 9, 2024 to close at $3.31 on May 10, 2024.
The lawsuit alleges that the Company made material misrepresentations by providing overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts related to early interim safety data results from the TAMARACK Phase 2 study.
For more information on the MacroGenics class action go to: https://bespc.com/cases/MGNX
Vicor Corporation ( VICR)
Class Period: April 26, 2023 - February 22, 2024
Lead Plaintiff Deadline: September 23, 2024
According to the complaint, during the class period, Defendants created the false and/or materially misleading impression that Vicor had secured a significant deal for its H100 product that, according to analysts, was Nvidia Corporation. These statements proved incorrect when first, on October 24, 2023, Vicor conspicuously failed to discuss the deal and then later, on February 22, 2024, when the Company issued a press release announcing its end of year earnings and flagged a sharp reversal in new contracts and sales. From an intra-class period high of nearly $100/share, Vicor’s stock price has fallen approximately 60%.
For more information on the Vicor class action go to: https://bespc.com/cases/VICR
American Airlines Group Inc. ( AAL)
Class Period: July 20, 2023 - May 28, 2024
Lead Plaintiff Deadline: September 16, 2024
On May 28, 2024, after the market closed, American Airlines announced that its Chief Commercial Officer was departing. Additionally, the Company disclosed that it was lowering its guidance. In an industry conference the following day, May 29, 2024, the Company’s CEO stated that the Company’s “expectation for domestic performance has worsened materially since [it] provided guidance in April,” and that the revision “is largely due to a softer domestic environment than [the Company was] expecting and [its] performance within that environment.”
On this news, American Airlines’ stock price fell $1.82, or 13.5%, to close at $11.62 per share on May 29, 2024, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s reports of growth relied far too heavily on inflated demand assumptions allegedly stemming from the implemented changes to their sale and distribution strategy which had downsized the Company’s sales and distribution channels to redirect consumers solely to their online platform; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
For more information on the American Airlines class action go to: https://bespc.com/cases/AAL
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com
