#United States #San Francisco #securities lawsuit #Lockheed Martin #LMT

Legal Issues Surrounding Lockheed Martin

Lockheed Martin Corporation (NYSE: LMT) is facing serious allegations of misleading investors regarding its financial health. A securities class action lawsuit has been initiated against the aerospace giant, highlighting significant concerns about its internal controls and disclosures.

Background of the Lawsuit

The lawsuit, titled Khan v. Lockheed Martin Corporation, calls into question the accuracy of the company's financial statements during a major investment period from January 23, 2024, to July 21, 2025. Allegations state that the firm failed to adequately inform investors of its internal control weaknesses, specifically concerning risks associated with its operations and contracts.

In particular, the complaint points out that throughout this timeframe, Lockheed Martin reportedly projected an overly optimistic view of its operational capabilities. Stakeholders were led to believe that the company had the necessary controls in place to manage and mitigate risks effectively, which, according to the allegations, was not the case. Instead, the internal controls were alleged to be ineffective and contributed to significant undisclosed operational risks.

Significant Disclosures and Financial Losses

The lawsuit cites several pivotal moments when the truth regarding Lockheed Martin's financial struggles began to surface. During the last few years, distinct negative disclosures prompted dramatic shifts in the company's stock price. Some notable disclosures include:

1. January 28, 2025: The company announced pre-tax losses of $1.8 billion in its Aeronautics segment.
2. April 17, 2025: The Chief Financial Officer (CFO) unexpectedly departed from the company.
3. July 22, 2025: An additional $950 million in pre-tax losses were reported for Aeronautics, along with $570 million in the Rotary and Mission Systems segment, significantly from issues tied to the Canadian Maritime Helicopter Program.

Each revelation translated into significant stock declines, with shares experiencing a nearly 11% drop following the final disclosure.

Investor Guidance

Hagens Berman, the law firm representing affected investors, emphasizes the importance of contacting them by September 26, 2025, the deadline for potential claimants. They are seriously encouraging investors who have faced substantial losses due to these occurrences to step forward. Hagens Berman's investigation aims to determine whether the extensive losses were foreseeable consequences of Lockheed Martin's alleged failure to maintain robust internal controls and provide honest, clear communication concerning the company's operational risks.

Reed Kathrein, a partner at Hagens Berman, stated, "The scale of these losses and their recurrence across different programs suggests a systemic issue, not isolated incidents." This examination will investigate senior management’s understanding of the insufficiencies of their internal risk assessment processes and whether they misled investors regarding the financial safety of the company.

Whistleblower Appeal

Furthermore, the firm invites whistleblowers with non-public information about Lockheed Martin to consider helping in the ongoing investigation or take part in the SEC Whistleblower program, which offers monetary incentives for actionable information that leads to successful recoveries. Individuals can contact Reed Kathrein at 844-916-0895 or email [email protected] for assistance.

About Hagens Berman

Hagens Berman is recognized for championing corporate accountability and has been influential in various litigation efforts, representing not only investors but also workers, consumers, and whistleblowers in achieving favorable outcomes against corporate negligence. The firm has successfully secured over $2.9 billion for its clients in similar cases. More information about Hagens Berman and its initiatives can be found on their official website, hbsslaw.com. The firm is dedicated to keeping its clients and the public informed, sharing updates and news via social media under @ClassActionLaw.