Key Takeaways:
AeroVironment Inc. was sued for securities fraud in a proposed class action after the cancellation of a US Space Force contract erased more than $3 billion in market value, according to a complaint filed in federal court.
"The company consistently touted its SCAR contract as a tremendous growth opportunity while failing to disclose that it faced imminent competition from other vendors," the lawsuit alleges. The complaint was filed in the US District Court for the Eastern District of Virginia.
AeroVironment shares fell 17 percent on March 2 after Space News reported the Space Force was reopening the Satellite Communication Augmentation Resources program to suppliers other than AeroVironment. The stock had already dropped 16 percent on Jan. 20 when the company announced a stop work order on its BADGER phased array antenna systems for the program. A third decline of 6.2 percent followed on March 11 after AeroVironment reported a $179 million quarterly operating loss that included a $151.3 million goodwill impairment tied to the SCAR contract.
The lawsuit covers investors who bought AeroVironment securities between June 25, 2025 and March 10, 2026. The company acquired BlueHalo LLC, the original SCAR contractor, in May 2025 for an undisclosed sum. BlueHalo had been awarded the $1.4 billion contract in 2022. On June 22, AeroVironment said its financial statements for the three and nine months ended Jan. 31, 2026 require restatement and should no longer be relied upon.
The lead plaintiff deadline is July 27. The case is Norrell v. AeroVironment, et al., No. 26-cv-01429. The lawsuit puts additional pressure on a stock already trading near its lowest level since before the BlueHalo acquisition. Investors will watch for any further disclosures about the SCAR program's competitive bidding process and the scope of the financial restatement.
