AeroVironment, Inc. (AVAV) Misled Investors by Providing the Public with Materially Flawed Revenue Guidance for Fiscal 2022
A shareholder filed a class action on behalf of investors who purchased or otherwise acquired AeroVironment, Inc. (NASDAQ: AVAV) securities between June 29, 2021 and December 7, 2021. AeroVironment designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the U.S. and internationally.
According to the complaint, defendants touted AeroVironment’s business prospects and provided investors with material information concerning the Company’s expected revenue for the fiscal year 2022. However, at the same time, defendants concealed material adverse facts concerning procurement delays, supply chain issues, staffing shortages, and possession of a record backlog.
On December 7, 2021, AeroVironment issued a press release announcing its second quarter earnings. In pertinent part, defendants announced they were reducing their guidance for fiscal 2022 from $560 and $580 million down to $440 and $460 million due allegedly to supply chain constraints due to COVID-19, extended procurement cycles tied to the Continuing Resolution, and staffing shortages. On this news, AeroVironment’s stock price fell from $79.95 per share on December 6, 2021, to $57.98 per share on December 7, 2021, a decline of nearly 27%.
What Now: Similarly situated shareholders may be eligible to participate in the class action against AeroVironment, Inc. Shareholders who want to act as lead plaintiff for the class must file their papers with the court by October 30, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
