AeroVironment ($AVAV) SCAR Contract and Growth Outlook Case

Attorneys review the case details to decide whether to proceed with a class action.

E.D. Virginia

Court

1:26-cv-01429

Case number

06/25/2025

Class period Start

03/10/2026

Class period End

07/27/2026

Lead Plaintiff motion deadline

$AVAV investors filed a claim against AeroVironment for allegedly overstating the stability and growth potential of its SCAR satellite communications contract with the U.S. Space Force.
After AeroVironment disclosed a stop-work order, reopening of the SCAR program to competitors, and eventual termination of its contract, $AVAV fell 47.1% between January 20, 2026 and March 11, 2026.
$AVAV investors can join this case to be notified about potential recovery.
Case Details:

Between June 25, 2025 and March 10, 2026, AeroVironment told investors the SCAR program and its BADGER phased array systems would be major long-term growth drivers for the company. Executives emphasized that the program was “very much on track,” represented a “tremendous growth opportunity,” and that the U.S. Space Force was requesting additional systems as the company prepared to scale production.

However, during this period, investors allege AeroVironment was facing increasing risk that the U.S. Space Force would shift away from a single-vendor arrangement and reopen the SCAR program to competitors. AeroVironment allegedly failed to disclose the likelihood that other vendors would compete for SCAR work, that expected SCAR revenue and growth projections were at risk, and that the company’s financial outlook depended heavily on a contract facing potential restructuring or termination.

Then, on January 20, 2026, AeroVironment disclosed that the U.S. government had issued a stop-work order on the SCAR BADGER contract. $AVAV fell 15.77%, closing at $330.89. 

Additional revelations followed on March 2, 2026, including reports that the U.S. Space Force was reopening the SCAR program to additional suppliers and reassessing the acquisition strategy. 

By March 11, 2026, shares had dropped to $207.73, representing a total decline of 47.1% over the correction period.

Based on these events, $AVAV investors filed a claim against AeroVironment, alleging the company:
It overstated the strength and security of the SCAR program.
It failed to warn investors that the U.S. Space Force was considering competing vendors and changing its acquisition strategy.
It inflated expectations for future revenue and growth tied to the BADGER contract.
Investors argue AeroVironment misled the market about the durability of its SCAR-related business opportunities, causing losses when the truth emerged.

Case Type

US Securities Class Action

Case Status

Attorney Investigation

Alleged Offence

Misleading Statements,

Fraud,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

01/20/2026

Filing date

05/26/2026

Lead Plaintiff Deadline

07/27/2026

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