Cases

Anderson v. Spirit AeroSystems Holdings, Inc.

Court: United States District Court, District of Kansas
Case Number: CA No. 13-CV-02261-EFM-TJJ
Judge: Hon. Eric F. Melgren
Class Period: 11/ 3/2011 - 10/24/2012
Case Contacts: Gerald H. Silk, Avi Josefson, Benjamin Galdston

Securities fraud class action on behalf of purchasers of Spirit AeroSystems Holdings, Inc. (“Spirit” or the “Company”) common stock during the period from November 3, 2011 through October 24, 2012, inclusive (the “Class Period”), against Spirit; Jeffrey L. Turner, the Company’s Chief Executive Officer; Phillip D. Anderson, its Chief Financial Officer; Alexander K. Kummant, former Senior Vice President of Oklahoma Operations; and Terry J. George, Vice President of Spirit’s 787 Program (collectively, “Defendants”).

On April 7, 2014, the Court-appointed Lead Plaintiffs, Arkansas Teacher Retirement System and District No. 9, I.A. of M. & A.W. Pension and Welfare Trusts, filed a Consolidated Complaint For Violations Of The Federal Securities Laws (“Complaint”).  The Complaint alleges that the Defendants defrauded investors in violation of Sections 10(b) and 20(a) of the Exchange Act (15 U.S.C. §§ 78j(b), 78t(a)), and Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder (17 C.F.R. § 240.10b-5).  Specifically, during the Class Period, Defendants misrepresented the success of the Company’s product development programs, including on their flagship Boeing 787 and Gulfstream 280 and 650 programs, while concealing ineffective internal and financial controls and significant cost overruns, artificially inflating the price of Spirit common stock during the Class Period.  On October 25, 2012, the Company shocked investors by disclosing for the first time that it expected to record charges totaling $590 million against 2012 earnings, and to future years’ earnings. The Company attributed those charges to significant operational problems across multiple product lines.  On this news, Spirit’s stock declined $6.55 per share, or 30%, to close at $15.11 per share, wiping out over $650 million in market value.

Defendants filed a motion to dismiss the Complaint on June 27, 1014, which plaintiffs opposed on September 12, 2014. On May 14, 2015, the court dismissed the Complaint with prejudice. Plaintiffs filed a notice of appeal to the Tenth Circuit on June 11, 2015. On August 19, 2015, Plaintiffs filed their Opening Brief in the Tenth Circuit Court of Appeals. On October 2, 2015, Defendants filed their responsive brief. Plaintiffs filed a Reply Brief in support of their Opening Brief on November 2, 2015.

For more information, please contact Avi Josefson at avi@blbglaw.com or Benjamin Galdston at beng@blbglaw.com.