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CAE FRAUD NEWS: BFA Law Warns CAE, Inc. Investors Who Suffered Losses Due to Approaching September 16 Deadline in Securities Fraud Class Action Lawsuit Page 1

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CAE FRAUD NEWS: BFA Law Warns CAE, Inc. Investors Who Suffered Losses Due to Approaching September 16 Deadline in Securities Fraud Class Action Lawsuit Page 1

New York, New York–(Newsfile Corp. – August 27, 2024) – Bleichmar Fonti & Auld LLP (“BFA”) announces that it has filed a class action lawsuit alleging violations of the federal securities laws against CAE Inc. (“CAE” or the “Company”) (NYSE: CAE) and certain senior executives of the Company.

If you have suffered a loss on your CAE investment, send your details to https://www.bfalaw.com/cases/cae-inc-investigation.

The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CAE investors who purchased or acquired CAE stock on a U.S. stock exchange. The case is pending in the U.S. District Court for the Southern District of New York and is titled Norbert Gamache v. CAE Inc., et al.No. 1:24-cv-05360. A copy of the lawsuit can be found here: https://www.bfalaw.com/siteFiles/Cases/CAEComplaint.pdf.

What is the lawsuit about?

The complaint alleges that Defendants made materially false and misleading statements about significant cost overruns in CAE’s Defense and Security (“Defense”) segment caused by several fixed-price, long-term Defense contracts entered into prior to the COVID-19 pandemic. In fact, certain of CAE’s fixed-price Defense contracts had experienced such significant cost overruns prior to COVID that the company had to take more than $720 million in cost and profit adjustments and rebase its entire Defense business.

On August 10, 2022, the Company announced $28.9 million in unfavorable contract profit adjustments related to two fixed-price contracts. On this news, CAE’s stock price fell $4.32 per share, or more than 16%, from $25.80 per share on August 9, 2022 to $21.48 per share on August 10, 2022.

However, the defendants continued to misrepresent the strength of the Defense segment. For example, the company assured investors that “[d]espite the additional volatility” of “acute near-term headwinds for the Defense sector, management has a very positive view of growth potential over a multi-year period.”

On November 14, 2023, CAE stated that certain legacy contracts were still plagued by cost overruns. CAE revealed that within its Defense segment, the company planned to “eliminate legacy contracts that have been most impacted by inflationary pressures.” Based on this news, CAE’s stock price fell $0.85 per share, or nearly 4%, from $21.92 per share on November 13, 2023 to $21.07 per share on November 14, 2023.

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