CAE Inc. has agreed to settle a shareholder class-action lawsuit filed in Québec for CAD $38.25 million. The lawsuit named the company, its former CEO and its former CFO as defendants.
The plaintiffs alleged that the defendants made misleading statements about fixed-price contracts in CAE’s defense sector, artificially inflating the company’s share price. The settlement covers investors who purchased shares between August 10, 2022, and May 21, 2024.
The defendants denied the allegations but agreed to settle to avoid the costs and risks of continued litigation. The proposed settlement requires court approval.
CAE will contribute up to CAD $5 million, with insurers covering the remainder. A settlement approval hearing is scheduled for December 22, 2026.