StockNews.AI
LMT
StockNews.AI
14 days

Lockheed Martin (LMT) Faces Investor Scrutiny Over Company's Disclosures About Aeronautics and RMS Segments' Performance, Securities Class Action Pending -- Hagens Berman

1. A class action lawsuit against Lockheed Martin was filed for misleading statements. 2. Q2 2025 results showed significant losses, leading to an 11% stock drop. 3. Investors were misled about costs and performance in key business segments. 4. Internal controls over financial reporting were reportedly ineffective. 5. CFO departure and financial losses have raised investor concern.

8m saved
Insight
Article

FAQ

Why Very Bearish?

The lawsuit indicates serious financial mismanagement, leading to significant losses. Similar past incidents, like Boeing's issues, show lasting adverse effects on stock prices.

How important is it?

The lawsuit directly addresses fundamental corporate governance concerns affecting financial health, which is crucial for stock valuation.

Why Short Term?

Immediate investor reactions to legal issues typically affect stock price quickly. Short-term confidence may wane due to this lawsuit.

Related Companies

BANOCRTX
, /PRNewswire/ -- A securities class action lawsuit styled Khan v. Lockheed Martin Corporation, et al., No. 1:25-cv-06197 (S.D.N.Y.) has been filed and seeks to represent investors who purchased or otherwise acquired Lockheed Martin Corporation (NYSE: LMT) securities between January 23, 2024 and July 21, 2025. The lawsuit comes in the wake of Lockheed's Q2 2025 financial results, which resulted in the price of the company shares falling almost 11% on July 22, 2025. National shareholder rights firm Hagens Berman is continuing its investigation into the claims and encourages Lockheed Martin investors with substantial losses to submit your losses now. Class Period: Jan. 23, 2024 – July 21, 2025Lead Plaintiff Deadline: Sept. 26, 2025Visit: www.hbsslaw.com/investor-fraud/lmtContact the Firm Now: [email protected]                                     844-916-0895 Lockheed Martin Corporation (LMT) Securities Class Action: The lawsuit is focused on the propriety of Lockheed Martin's statements concerning performance by two of its four business segments – namely, the Aeronautics and Rotary and Mission Systems ("RMS") business segments. In the past, Lockheed Martin has repeatedly assured investors that its "contracts generally allow for the recovery of costs in the pricing of our products and services[,]" the company "identif[ies] and monitor[s] risks to the achievement of the technical, schedule and cost aspects of the contract and assess[es] the effects of those risks on our estimates of total costs to complete the contract[,]" and "[i]ncreases or decreases in profit booking rates are recognized in the current period they are determined and reflect the inception-to-date effect of such changes."   The complaint alleges that Lockheed Martin made false and misleading statements while failing to disclose crucial information to investors, including that the company: Lacked effective internal controls regarding its purportedly risk-adjusted contracts including the reporting of its risk-adjusted profit booking rate; Lacked effective procedures to perform reasonably accurate comprehensive reviews of program requirements, technical complexities, schedule, and risks; Overstated its ability to deliver on its contractual commitments in terms of cost, quality and schedule; and As a result, it was reasonably likely to report significant losses. Investors began to learn the truth on January 28, 2025, when Lockheed Martin reported QE and FY ended December 31, 2024 financial results that included $1.8 billion of pre-tax losses in its Aeronautics segment, citing "performance issues" and suggesting possible increases in scope and cost. Shortly afterward, on April 17, 2025, Lockheed Martin announced that CFO Jay Malave left the company. Then, on July 22, 2025, the company announced its Q2 2025 financial results that included an additional $950 million pre-tax losses in its Aeronautics segment, again citing "performance issues." The company also recognized $570 million pre-tax losses in its RMS segment due to problems with its Canadian Maritime Helicopter Program. One analyst reportedly characterized the company's report as "a 'kitchen sink' type quarter as a result of the recent CFO change." In response to each of these events, the price of Lockheed Martin shares significantly fell. "We're investigating whether Lockheed Martin may have misled investors about the full extent of performance and financial problems within Aeronautics and RMS and whether the company timely recorded charges and changes in booking rates," said Reed Kathrein, the Hagens Berman partner leading the investigation. If you invested in Lockheed Martin and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the Lockheed Martin case and our investigation, read more » Whistleblowers: Persons with non-public information regarding Lockheed Martin should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected]. About Hagens BermanHagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.  SOURCE Hagens Berman Sobol Shapiro LLP WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Related News