CAE to pay $38.25 million to settle shareholder class-action lawsuit

CAE Inc. has agreed to pay $38.25 million to settle a shareholder class-action lawsuit against the company, its former CEO, and its former CFO. The settlement addresses allegations of misleading statements that inflated the company's share price. Under the proposed agreement, CAE will pay up to $5 million, with its insurers covering the remaining amount. The lawsuit claimed the defendants made misleading statements about fixed-price contracts in the defence sector. The defendants denied all allegations but agreed to settle to avoid litigation delays and risks. The class covers investors who bought CAE shares between Aug. 10, 2022, and May 21, 2024, and held them during a specific period in early 2024. A Quebec court will hold a settlement approval hearing on Dec. 22.