CAE CAD $38.25 Million Investor Settlement
CAE agreed to a CAD $38.25 million settlement to resolve claims that it and two former executives made material misrepresentations and failed to disclose material changes that allegedly inflated the value of CAE common shares.
Outline:
CAE reached a proposed CAD $38.25 million settlement with investors. The case concerns alleged misrepresentations and undisclosed material changes involving CAE’s business, including eight fixed-price defence and security contracts. The settlement covers certain investors who purchased CAE common shares from August 10, 2022 through May 21, 2024. CAE, Marc Parent, and Sonya Branco deny liability.
Timeline:
August 10, 2022: CAE began a period in which investors were exposed to misrepresentations and undisclosed material changes concerning the company’s business.
May 21, 2024: CAE released information concerning eight fixed-price contracts in its defence and security sector that allegedly had a disproportionate impact on the segment’s profitability and prospects and on CAE as a whole; the Class representative alleges this disclosure provided the complete corrective information that had previously been withheld.
Background:
The dispute centers on eight fixed-price contracts in CAE’s defence and security sector. According to the allegations, those contracts had a disproportionate impact on the profitability and prospects of CAE’s defence and security business and CAE as a whole.
The Class representative alleges that CAE, Marc Parent, and Sonya Branco released documents and made public statements containing material misrepresentations while failing to disclose material changes involving the company’s business, operations, or capital.
Investors allege that these statements and omissions prevented the market from fully understanding the impact of the eight contracts. As a result, CAE common shares were allegedly traded at artificially inflated prices, causing investors to pay more for the shares than they otherwise would have.
According to the allegations, complete corrective information was released on May 21, 2024. The proposed securities class action was then commenced on June 10, 2024, seeking damages for affected CAE investors.
CAE, Parent, and Branco deny the allegations and maintain that they have meritorious defenses. The parties later agreed to resolve the claims for CAD $38.25 million.
What Can Investors Expect Now?
CAE agreed to a CAD $38.25 million settlement to resolve claims that it and two former executives made material misrepresentations and failed to disclose material changes that allegedly inflated the value of CAE common shares.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
all persons who purchased one or more common shares of CAE during the period from August 10, 2022, to May 21, 2024, inclusive and still held all or part of these common shares at any time between February 14, 2024, and May 22, 2024, inclusive
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.