Purchasers of CAE Inc.'s common shares may be eligible to claim compensation from a $38.25 million class action settlement

MONTREAL, Oct. 2, 2026 /PRNewswire/ -- A proposed settlement has been reached in a class action lawsuit in Québec against CAE Inc. ("CAE"), and its former CEO and CFO (collectively, the "Defendants"). The claim period is now open.

The class action alleges that the Defendants released documents and made oral public statements which contained misrepresentations about material facts and failed to disclose material changes in the business, operations or capital of CAE.

Defendants deny all allegations and liability, and no court has found them liable. The parties agreed to settle to avoid the delays and risks associated with continued litigation and trial. Under the proposed settlement, Defendants will pay CAD $38,250,000 to resolve all claims. CAE will pay an amount of up to CAD $5M as per the deductible under CAE's insurance coverage (which deductible is eroded by the defence fees and disbursements incurred by CAE) and the outstanding amount will be paid by the insurers.

The class consists of all persons who purchased one or more common shares of CAE during the period from August 10, 2022, to May 21, 2024, inclusive, and still held some or all of these common shares at any time between February 14, 2024, and May 22, 2024.

The settlement agreement requires approval from the Superior Court of Québec. If the settlement agreement is approved, the class action lawsuit will be fully resolved, and the settlement amounts will be distributed to class members who file valid claim forms. The settlement approval hearing is scheduled for December 22, 2026, in Montréal, Québec.

The settlement agreement provides that, after the payment of fees for the lawyers representing the class and of administration expenses, the settlement amounts will be distributed among all eligible class members who submit a valid claim, in proportion to the respective value of each valid claim.

Class members must file a claim to be considered for compensation. While claims will not be paid unless the settlement agreement is approved by the court, class members can file their claims now. The deadline for filing claims is March 22, 2027. Class members are required to prove their identity and provide certain share transaction documents to obtain compensation. Visit CAESecuritiesSettlement.com to learn more about how to file a claim. 

Anyone who does not want to be part of the class action or receive benefits under this settlement must opt out before December 1, 2026. Visit CAESecuritiesSettlement.com to learn more about how to opt out.

For more detailed information, to view the settlement agreement and the court-approved notices and to learn more about your rights at this stage of the litigation, please visit CAESecuritiesSettlement.com.

SOURCE Scott+Scott CA ULC and Belleau Lapointe LLP