PHILADELPHIA, April 10, 2020 /PRNewswire/ -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Spirit AeroSystems Holdings, Inc. ("Spirit" or the "Company") (NYSE: SPR) on behalf of investors who purchased shares of the Company's common stock between October 31, 2019 and February 27, 2020, inclusive (the "Class Period").
Current Spirit stockholders who purchased shares of the Company's common stock prior to October 31, 2019 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or via email at [email protected], to discuss this action and their legal rights and options. Additional information about this action may also be found at www.kaskelalaw.com/case/spirit-aerosystems/.
As detailed in the complaint, on January 30, 2020, Spirit disclosed that it had determined that the Company had not complied with its accounting procedures regarding its potential contingent liabilities. As a result, Spirit additionally disclosed that several senior executive officers had resigned. Following this news, shares of Spirit's stock declined $2.56 per share, or approximately 4% in value, to close at $65.08 per share on January 30, 2020.
Then, on February 28, 2020, the Company disclosed that "it should have recorded an incremental contingent liability for the third quarter of 2019 of less than $8 million." During a conference call that same day, Spirit's CEO reported that 737 MAX production rates in 2020 would be over 66 percent lower than those in 2019, and would not normalize for the next several years. Following this news, shares of Spirit's stock declined an additional $6.19 per share, or 10% in value, to close at $52.84 per share on February 28, 2020.
The shareholder class action complaint alleges that Spirit issued a series of false and misleading statements to investors during the Class Period, and failed to disclose that: (i) the Company lacked effective internal controls over financial reporting; (ii) the Company did not comply with its established accounting principles related to potential contingent liabilities; and (iii) as a result, Defendants' statements about Spirit's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Current Spirit stockholders are encouraged to contact Kaskela Law LLC to discuss this action and their legal rights and options. Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
SOURCE Kaskela Law LLC