The proposed securities class action covers AeroVironment purchases from June 25, 2025 to March 10, 2026 and centers on allegations tied to the SCAR program, a stop work order and a contract termination.
Robbins Geller Rudman & Dowd LLP said investors who purchased or acquired AeroVironment, Inc. securities between June 25, 2025 and March 10, 2026 have until Monday, July 27, 2026 to seek appointment as lead plaintiff in a proposed securities class action. The case, captioned Norrell v. AeroVironment, Inc., No. 26-cv-01429 (E.D. Va.), alleges violations of the Securities Exchange Act of 1934 by AeroVironment and certain of its top current and former executive officers. The complaint alleges the company understated the likelihood it would soon face competition from other vendors for work tied to the U.S. Space Force's Satellite Communication Augmentation Resource, or SCAR, program and, as a result, overstated its business and financial prospects. It further alleges that AeroVironment disclosed on January 20, 2026 a stop work order on its agreement to deliver BADGER systems to the SCAR program, after which the stock fell nearly 16%; that SpaceNews reported on March 2, 2026 the U.S. Space Force was reopening the program and adopting a new acquisition strategy, after which the shares fell more than 17%; and that AeroVironment said on March 10, 2026 that the contract had been terminated, it would need to recompete for the work, and it had recorded a $151.3 million goodwill impairment in its space division, contributing to a third-quarter fiscal 2026 operating loss of $179.0 million versus a $3.1 million loss a year earlier. The release also outlines the lead plaintiff process under the Private Securities Litigation Reform Act of 1995, which allows eligible investors to seek that role without affecting any potential recovery if they do not do so.