Notice to Pension Funds, Asset Managers, and Fiduciaries Holding AeroVironment Positions: Alleged Misrepresentations About the $1.7 Billion SCAR Contract May Trigger Fiduciary Review Obligations

NEW YORK , June 4, 2026 /PRNewswire/ -- Institutional investors holding positions in AeroVironment, Inc. (NASDAQ: AVAV) during the period between June 25, 2025 and March 10, 2026 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

AVAV shares declined from $392.86 before the first corrective disclosure to $207.73 after the third, a peak-to-trough loss exceeding 47%. The lead plaintiff deadline is July 27, 2026.

Notice to Institutional Holders

Pension funds, mutual funds, hedge funds, and registered investment advisors that held AVAV shares between June 25, 2025 and March 10, 2026 should assess whether fiduciary obligations require evaluation of this litigation. The lawsuit contends that AeroVironment and certain of its officers — Wahid Nawabi, Kevin P. McDonnell, and Mary Clum — made materially misleading statements about the Company's largest contract, the $1.7 billion Satellite Communication Augmentation Resource ("SCAR") program, while the U.S. Space Force was moving toward a multi-vendor acquisition strategy that ultimately resulted in contract termination.

Institutional holders with concentrated defense-sector exposure may have experienced amplified portfolio impact from the three successive corrective disclosures between January and March 2026.

ERISA and Fiduciary Considerations

For ERISA-governed plans that held AVAV in participant-directed accounts or as part of a managed portfolio, the corrective disclosure sequence raises potential monitoring questions. The allegations center on whether plan fiduciaries had access to the same public statements that the lawsuit claims were misleading, including management's repeated characterization of SCAR as a growth driver and a "$1 billion franchise" through December 2025, approximately six weeks before the stop work order.

Fiduciary Obligations and Recovery Options

• Institutional investors with the largest documented losses are best positioned for lead plaintiff appointment under the PSLRA
• Lead plaintiffs gain direct oversight of litigation strategy, settlement negotiations, and counsel selection
• Serving as lead plaintiff carries no additional financial obligation; counsel fees are paid from any recovery
• Fiduciaries may have an affirmative duty to investigate recovery options on behalf of beneficiaries when portfolio losses stem from alleged securities fraud
• Institutional lead plaintiffs historically achieve larger recoveries per share than retail-led actions
• Multiple corrective events over 50 days created a complex damages profile that benefits from sophisticated loss analysis

Contact us for institutional recovery options or call (888) SueWallSt.

Portfolio Impact Assessment

The three-stage corrective disclosure sequence complicates loss calculations. Institutions that purchased shares after the September 30, 2025 Investor Open House, where management touted SCAR as central to future growth, and held through the January 20, 2026 stop work order announcement, face distinct damages from those that purchased after January 20 and held through the March 10, 2026 contract termination and $151.3 million goodwill impairment disclosure. Professional loss analysis can help quantify recoverable damages across these tranches.

"Institutional investors play a critical role in securities class actions. Their participation strengthens the litigation and ensures that the class is represented by shareholders with substantial interests and the resources to oversee complex proceedings like this one," stated Joseph E. Levi, Esq.

Case Summary

The action allegesAeroVironment understated the likelihood that the U.S. Space Force would shift away from a single-vendor strategy for the SCAR program, causing the Company's securities to trade at artificially inflated prices throughout the Class Period. Three corrective disclosures between January and March 2026 revealed the stop work order, the Space Force's decision to reopen the program to competing vendors, and the ultimate contract termination accompanied by a $151.3 million goodwill impairment and $179.0 million quarterly operating loss.

ABOUT SUEWALLST

SueWallSt provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the AVAV Lawsuit

Q: Who is eligible to join the AVAV investor lawsuit? A: Investors who purchased AVAV stock or securities between June 25, 2025 and March 10, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What is the AVAV lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is July 27, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What documents do I need to make a claim? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What if I already sold my AVAV shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.

Q: Can I join a different law firm's lawsuit instead? A: Multiple firms often file competing complaints. The court consolidates and appoints a single lead counsel. Contacting SueWallSt before July 27, 2026 ensures your losses are considered.

CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@SueWallSt.com
Tel: (888) SueWallSt
Fax: (212) 363-7171

View original content to download multimedia:https://www.prnewswire.com/news-releases/suewallst-reminds-shareholders-of-a-lead-plaintiff-deadline-of-july-27-2026-in-aerovironment-inc-lawsuit---avav-302791920.html

SOURCE SueWallSt.com