AeroVironment, Inc. (NASDAQ: AVAV)

This lawsuit is for anyone who acquired securities in AeroVironment, Inc. (NASDAQ: AVAV) from June 24, 2025 through June 18, 2026.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by understating the likelihood that the Company would face imminent competition from other vendors for the work it was performing for the U.S. Space Force’s Satellite Communication Augmentation Resource (“SCAR”) program.

On January 20, 2026, AeroVironment disclosed that the US government had issued a stop work order on the Company’s agreement to deliver BADGER phased array antenna systems to the US Space Force’s SCAR program. The Company stated the stop work order “allows for the parties to negotiate an amended agreement for the future of the SCAR program” and that “[t]he Company expects to continue to deliver capabilities and products for the SCAR program.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on March 2, 2026, Space News reported that the US Space Force was reopening the SCAR program and “reassessing how to move forward.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on March 10, 2026, AeroVironment released its third quarter fiscal 2026 financial results, reporting an operating loss of $179 million, compared to $3.1 million the previous year. The results reflected the impact of a $151.3 million goodwill impairment after the stop work order on the BADGER systems. The Company also revealed that the US Space Force had terminated the Company’s contract for the SCAR program and, as a result, it would have to “recompete” for the program. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on March 31, 2026, the US Space Force announced its decision to diversify suppliers and rely on less costly commercial, off-the-shelf solutions in connection with its work to upgrade the Satellite Control Network, instead of pursuing another single-vendor bespoke solution. Finally, on June 22, 2026, AeroVironment disclosed that its previously issued financial statements should no longer be relied upon because the Company had understated the goodwill impairment charge by $89.4 million, or 59%.  AeroVironment further disclosed that the restatement resulted from a newly identified material weakness in internal control over financial reporting and that its disclosure controls and procedures as of January 31, 2026, were ineffective. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in AeroVironment, Inc. (NASDAQ: AVAV) from June 24, 2025 through June 18, 2026 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.