Investor Alert: Canadian and Foreign-based Investors Can Participate in a Shareholder Class Action against CAE, Inc.

TORONTO, Nov. 10, 2024 /CNW/ - Berger Montague (Canada) PC, a Toronto-based law firm that focuses on representing investors in cross-border shareholder disputes, has launched an investigation into CAE Inc. (TSX: "CAE" and FRA: "CE9")

CAE is a Canadian incorporation technology company that develops software-based simulation training and critical operations support solutions, which is based in Saint-Laurent, Quebec.  It is subject to the Quebec Securities Act.

On November 14, 2023, CAE announced that it made a decision to retire certain "legacy contracts" in its Defense and Security Segment.  CAE negligently omitted to disclose to the market what it anticipated the financial impact of retiring these legacy contracts and it omitted to disclose the size of the impairment of goodwill/writeoff.

On May 21, 2024, however, CAE announced that, as a result of a "re-baselining of its Defense business, Defense impairments, [and] accelerated risk recognition on Legacy Contracts," the Company had "recorded a $568.0 million non-cash impairment of Defense goodwill," "$90.3 million in unfavorable Defense contract profit adjustments as a result of accelerated risk recognition on the Legacy Contracts," and a "$35.7 million impairment of related technology and other non-financial assets which are principally related to the Legacy Contracts."

The Market's reaction was immediate; CAE stock declined $1.33 per share, or approximately 5%, from a closing price of $27.06 per share on May 21, 2024, to a close of $25.73 per share on May 22, 2024. Within 10-trading days the price continued to drop to $25.03.

Investors believe that CAE knew or should have known that the retirement of these legacy contracts would cost over $600 million and could have been disclosed on November 14, 2023, and not May 21, 2024, therefore allowing new investors to avoid that financial loss.

If you purchased shares of CAE, Inc. between November 14, 2023 and May 21, 2024, and would like to know more about our investigation or have information to share, please contact us at [email protected] or by phone at [phone].

www.bergermontague.ca 

SOURCE Berger Montague (Canada) PC

Questions may be directed to: Berger Montague (Canada) PC, 330 Bay Street, Suite 505, Toronto, ON M5H 2S8, Email: Andrew Morganti at [email protected] or Andrew Abramowitz at [email protected].