AeroVironment Investors Alerted to Securities Fraud Class Action Over SCAR Program Disclosures
AeroVironment Investors Alerted to Securities Fraud Class Action Over SCAR Program Disclosures
Philadelphia, Pennsylvania â A securities fraud class action has been announced against AeroVironment, Inc. (NASDAQ: AVAV), with national plaintiffsâ law firm Berger Montague advising investors to review their legal rights after alleged disclosure issues tied to the companyâs SCAR program work.
The lawsuit concerns investors who purchased or acquired AeroVironment common stock between June 25, 2025, and March 10, 2026. According to the notice, eligible investors have until July 27, 2026, to seek appointment as lead plaintiff in the case.
Background of the AeroVironment Class Action
AeroVironment is an Arlington, Virginia-based defense technology company known for autonomous systems, unmanned aircraft systems, loitering munitions, space technologies, and directed-energy solutions. Its customers include the U.S. Department of Defense, allied governments, and commercial clients.
The complaint alleges that AeroVironment and certain defendants made materially false or misleading statements about the companyâs business outlook, operations, and financial prospects during the class period. The claims focus heavily on the companyâs role in the Satellite Communication Augmentation Resource, or SCAR, program.
Key Allegations in the Complaint
The lawsuit claims that AeroVironment understated the risk of near-term competition from other vendors for work connected to the SCAR program. The complaint also alleges that the company overstated its business and financial prospects because investors were not fully informed about the risks surrounding the program.
According to the notice, the SCAR program was connected to the U.S. Space Forceâs effort to modernize the Satellite Control Network. The lawsuit alleges that developments involving the program later affected AeroVironmentâs stock price and investor confidence.
Stock Price Declines Cited in the Notice
Several events are highlighted in the class action notice. On January 20, 2026, AeroVironment announced that the U.S. government had issued a stop work order related to the companyâs agreement to deliver BADGER systems to the SCAR program. Following that news, AeroVironmentâs stock price fell by $61.97 per share, or 15.77%, closing at $330.89.
On March 2, 2026, a report stated that the U.S. Space Force was reopening and reassessing the SCAR program. The notice says AeroVironmentâs stock dropped another $43.93 per share, or 17.42%, closing at $208.32.
Then, on March 10, 2026, AeroVironment reported a third-quarter fiscal 2026 operating loss of $179.0 million, compared with a loss of $3.1 million in the prior-year quarter. The company also reported a $151.3 million goodwill impairment in its space division tied to the BADGER stop work order.
SCAR Contract Termination and Recompetition
The notice states that AeroVironment disclosed that the U.S. Space Force had terminated its SCAR contract, requiring the company to recompete for the program. Following this disclosure, AeroVironmentâs stock price fell $13.84 per share, or 6.24%, closing at $207.73 on March 11, 2026.
Later, on March 31, 2026, the U.S. Space Force reportedly announced that it would diversify its supplier base and move toward commercial, off-the-shelf solutions for modernizing the Satellite Control Network.
Investor Deadline and Lead Plaintiff Process
Investors who purchased or acquired AeroVironment common stock during the class period may seek to serve as lead plaintiff by July 27, 2026. A lead plaintiff is typically an investor who represents the interests of the proposed class in a securities lawsuit.
Investors are not required to serve as lead plaintiff to remain potential class members. However, those who want to actively guide the litigation must generally file a motion with the court before the stated deadline.
Important Note for Investors
The allegations in the complaint are claims and have not been proven in court. AeroVironment and the named defendants may dispute the allegations. Investors should review official court filings and consult qualified legal or financial professionals before making decisions.
This report is based on the public class action notice issued through Newsfile Corp. and Berger Montague. It is for informational purposes only and should not be treated as legal, financial, or investment advice.
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