Spirit AeroSystems Holdings, Inc. (SPR) Misled Investors Regarding its Production Quality Controls
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Spirit AeroSystems Holdings, Inc. (NYSE: SPR) securities between April 8, 2020 and April 13, 2023. Spirit is a non-Original Equipment Manufacturer that serves markets for commercial airplanes, military platforms, and business/regional jets.
According to the complaint, defendants failed to disclose to investors that Spirit lacked effective production quality controls, which caused the Company to incorrectly install fittings designed to join the aft fuselage to the vertical tail for some Boeing 737 Max airplanes that Spirit sent to Boeing. As a result, Spirit would have to develop an inspection and repair procedure for the affected fuselages, which would negatively impact Spirit’s financial results.
On April 13, 2023, Boeing announced that it would halt deliveries of its 737 MAX aircraft due to a supplier quality problem. The same day, Bloomberg identified Spirit as the supplier of the faulty part. Several media outlets reported the details of the quality problem. An article by Reuters reported that “[t]he problem involves the installation of two fittings that join the aft fuselage made by Spirit to the vertical tail, which were not attached correctly to the structure of the fuselage before it was sent to Boeing.” Reuters also reported that “Spirit said it is working to develop an inspection and repair for the affected fuselages” and that “the problem is believed to date back to 2019.” On this news, Spirit’s stock price fell $7.38, or 20.7%, to close at $28.22 per share on April 14, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Spirit AeroSystems Holdings, Inc. Shareholders who want to act as lead plaintiff for the class must file their papers by July 3, 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.