CAE CLASS ACTION NOTICE: BFA Law has Filed a Securities Fraud Class Action Lawsuit Against CAE Inc. (NYSE:CAE), Encourages Investors to Contact the Firm

Core Viewpoint - A class action lawsuit has been filed against CAE Inc. for alleged violations of federal securities laws, claiming that the company and its executives made materially false and misleading statements regarding significant cost overruns in its Defense segment during the Class Period from February 11, 2022, to May 21, 2024 [1][3]. Group 1: Allegations and Financial Impact - The lawsuit alleges that CAE's Defense segment faced substantial cost overruns due to fixed-price contracts established before the COVID-19 pandemic, leading to over $720 million in charges and profit adjustments [3]. - CAE's stock price experienced significant declines following announcements related to unfavorable contract profit adjustments and the need to retire legacy contracts affected by inflationary pressures, with a drop of nearly 10% on February 14, 2024, and a decline of over 5% on May 22, 2024 [4][9]. - Specific financial impacts included a $568 million non-cash impairment of Defense goodwill and $90.3 million in unfavorable contract profit adjustments announced on May 21, 2024 [9]. Group 2: Historical Context and Previous Announcements - On August 10, 2022, CAE reported $28.9 million in unfavorable contract profit adjustments, resulting in a stock price drop of more than 16% [7]. - In November 2023, CAE acknowledged ongoing issues with legacy contracts, which led to a nearly 4% decline in stock price [8]. - The company had previously assured investors of a positive outlook for its Defense segment despite acknowledging volatility and economic headwinds [4].