AeroVironment sued for securities fraud after 17% stock drop on SCAR contract issues

AeroVironment Inc. was sued for securities fraud after a 17% stock drop triggered by issues with its US Space Force Satellite Communication Augmentation Resources contract.

"Investors who purchased AeroVironment securities between June 25, 2025 and March 10, 2026 should contact the firm before the July 27 lead plaintiff deadline," Bleichmar Fonti & Auld LLP, the law firm that filed the class action, said in a statement.

The lawsuit alleges AeroVironment understated the likelihood that it would face competition from other vendors for work performed under the SCAR program and the Space Force's efforts to modernize the Satellite Control Network. The company's shares fell as the truth emerged through a series of disclosures: a US government stop-work order on Jan 20, a Space Force announcement that it was reopening the SCAR program on March 2, and AeroVironment's disclosure of a $151.3 million goodwill impairment and contract termination on March 10.

The July 27 deadline for investors to seek appointment as lead plaintiff is less than three weeks away. The court-appointed lead plaintiff — typically the investor with the largest financial interest — will direct the litigation on behalf of the class. Faruqi & Faruqi LLP and the Rosen Law Firm have also issued notices to investors, signaling multiple firms are competing for the lead role. AeroVironment did not immediately respond to a request for comment.

This article is for informational purposes only and does not constitute investment advice.