Spirit AeroSystems Holdings, Inc. Sued by Investor
Robbins Arroyo LLP announces that a purchaser of Spirit AeroSystems Holdings, Inc. (NYSE: SPR) securities has filed a complaint in the U.S. District Court for the District of Kansas. The complaint alleges that Spirit AeroSystems and certain of its officers and directors violated the Securities Exchange Act of 1934 between May 5, 2011 and October 24, 2012 (the “Class Period”). Spirit AeroSystems, through its subsidiaries, designs and manufactures commercial aerostructures worldwide.
Spirit AeroSystems Is Accused of Making False and Misleading Statements Regarding the Execution of Its Diversification and Growth Strategy
The complaint charges that during the Class Period, the Spirit AeroSystems issued a series of materially false and misleading statements concerning the company’s operations and business. Specifically, the complaint alleges that the company misled investors regarding the company’s future cash flows and potential cost overruns and that its financial statements were false and misleading throughout the class period. According to the complaint, those statements were false and/or misleading because the company failed to disclose that: (i) the company was struggling to execute its diversification and growth strategy while expanding its customer-base, manufacturing sites, and product design capabilities; and (ii) the company lacked adequate internal and financial controls, especially with respect to cost overruns on its largest programs.
Spirit AeroSystems Stock Price Falls Dramatically on the Disclosure of $590 million Charge Taken on Earnings
On October 25, 2012, Spirit AeroSystems announced that it expected to record charges against earnings of $590 million, almost 20% of its revenues, citing its struggles to manage multiple development programs with significant design changes and schedule delays. On this news, the company’s stock price dropped approximately 30%, or $6.55 per share, to close at $15.11 per share on October 25, 2012.
If you invested in Spirit AeroSystems and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003 or you can complete the form below and we will contact you directly.
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