AeroVironment Lawsuit Submission Form

Introduction

A securities class action lawsuit has been filed against AeroVironment, Inc. (NASDAQ: AVAV) and certain of its senior executives on behalf of investors who purchased or acquired AeroVironment securities between June 25, 2025 and March 10, 2026. The complaint, filed by plaintiff Eric Norrell in the U.S. District Court for the Eastern District of Virginia, alleges that defendants made materially false and misleading statements about the company's business prospects, specifically regarding a $1.7 billion contract to deliver BADGER phased array antenna systems for the U.S. Space Force's Satellite Communication Augmentation Resource (SCAR) program. According to the complaint, defendants repeatedly assured investors that the SCAR program would be a major revenue growth driver while understating the likelihood that AeroVironment would imminently face competition from other vendors. According to the complaint, the truth began to emerge through a series of disclosures beginning in January 2026, including a stop work order, the reopening of the program to competing suppliers, and ultimately a contract termination. AeroVironment’s stock price allegedly fell sharply after each of the three alleged corrective disclosures.

Company Profile

AeroVironment operates as a defense technology provider delivering integrated capabilities across air, land, sea, space, and cyber domains. On May 1, 2025, the company completed its acquisition of BlueHalo, a defense technology firm specializing in advanced engineering products, in an all-stock transaction valued at approximately $4.1 billion, which brought the SCAR program contract into AeroVironment's portfolio.

Class Period

June 25, 2025 – March 10, 2026

Investors who purchased or acquired AeroVironment, Inc. (AVAV) securities during the Class Period and suffered losses may be eligible to seek recovery under the federal securities laws.

Allegations

The complaint alleges that throughout the Class Period, AeroVironment and its senior executives made materially false and misleading statements about the company's growth prospects tied to the SCAR program, a U.S. Space Force initiative to modernize the aging Satellite Control Network. AeroVironment had inherited a $1.7 billion contract to deliver BADGER phased array antenna systems through its May 2025 acquisition of BlueHalo. From the start of the Class Period, defendants consistently held up the SCAR program as a cornerstone of the company's revenue outlook, with CEO Wahid Nawabi calling it "a $1 billion franchise" and "a tremendous growth opportunity" during investor presentations and earnings calls.

According to the complaint, defendants' public statements grew increasingly specific and confident as the Class Period progressed. At a September 30, 2025 Investor Open House, Mary Clum, President of AeroVironment's Space, Cyber and Directed Energy segment, told investors that the company's team was working "shoulder to shoulder" with the U.S. Space Force, that the customer was "asking for more" BADGER systems, and that AeroVironment stood "ready to build more." In December 2025, Nawabi told investors at Goldman Sachs' Industrial and Materials Conference that SCAR would be among the "major contributors to growth" over the next several years, describing the program as one where AeroVironment was "the only player." During the second quarter earnings call on December 9, 2025, Nawabi stated the program was "very much on track" and that AeroVironment was transitioning from development to product delivery, with margins and revenue expected to improve through the remainder of fiscal year 2026 and beyond.

The complaint alleges these statements were materially false and misleading because defendants understated the likelihood that AeroVironment would imminently face competition from other vendors for the SCAR program work. Plaintiffs allege defendants knew or recklessly disregarded that the U.S. Space Force was reassessing its single-vendor approach and considering a shift toward a multi-vendor acquisition strategy. The complaint points to insider stock sales during the Class Period as evidence of scienter: defendants Nawabi and McDonnell together sold approximately 49,199 shares of AeroVironment stock for over $7.8 million in proceeds. The complaint further alleges that defendants' repeated emphasis on their close, "shoulder-to-shoulder" relationship with the Space Force meant they were aware of the significant risk that the agency would terminate its single-vendor contract and open the program to competing suppliers.

The Truth Emerges

The first indication that AeroVironment's SCAR program narrative was unraveling came on January 20, 2026, when the company disclosed in an SEC filing that the U.S. government had issued a stop work order on its agreement to deliver BADGER systems. While AeroVironment characterized the stop work order as an opportunity to "negotiate an amended agreement" and stated it expected to "continue to deliver capabilities and products for the SCAR program," the complaint alleges these reassurances were themselves materially misleading because they overstated the likelihood and extent of continued revenues from the program.

The situation deteriorated further on March 2, 2026, when Space News reported that the U.S. Space Force was reopening the SCAR program and "reassessing how to move forward." Colonel Owen Stevens, director of contracting at the Space Rapid Capabilities Office, stated the Space Force would "move into a new acquisition strategy for SCAR" that would "likely take the form of other companies building versions or variants of SCAR," departing entirely from the single-vendor model that had underpinned AeroVironment's revenue projections. Then, on March 10, 2026, AeroVironment reported third quarter fiscal year 2026 results that included a $151.3 million goodwill impairment in its space division and disclosed that the U.S. Space Force had terminated the company’s existing SCAR contract, requiring AeroVironment to “recompete” for the program. The company also lowered its full-year revenue guidance from $1.9 billion to $2.0 billion down to $1.85 billion to $1.95 billion. On March 31, 2026, the U.S. Space Force announced it would diversify suppliers and rely on less costly commercial, off-the-shelf solutions rather than pursuing another single-vendor bespoke approach.

Market Reaction

AeroVironment’s stock price allegedly suffered three significant declines as the complaint’s alleged corrective disclosures emerged. On January 20, 2026, following disclosure of the stop work order, AVAV fell $61.97 per share, or 15.77%, to close at $330.89. On March 2, 2026, after Space News reported the Space Force was reopening the program to competing suppliers, AVAV dropped another $43.93 per share, or 17.42%, to close at $208.32. Analysts responded sharply: Raymond James cut its rating from Strong Buy to Underperform, Canaccord Genuity reduced its price target 17.5% from $400 to $330, and BTIG cautioned investors that "there was previously little doubt from the company that the program would be recompeted in the first place."

Following AeroVironment's March 10, 2026 disclosure of the contract termination, the $151.3 million goodwill impairment, and lowered revenue guidance, AVAV fell an additional $13.84 per share, or 6.24%, to close at $207.73 on March 11, 2026. Analysts again cut price targets: Needham reduced its target from $450 to $400, Canaccord Genuity lowered its target from $330 to $300, and BTIG cut its target from $415 to $330, citing a "disappointing SCAR termination." Across these three alleged corrective disclosure events, AVAV shares experienced three significant declines.

Next Steps

●        Lead Plaintiff Deadline: July 27, 2026

●        After the lead plaintiff deadline, the Court will consider any lead plaintiff motions.

●        If the case proceeds, the Court may later consider class certification.

●        Defendants may also file a motion to dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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