LOS ANGELES At least two law firms are circling
Spirit AeroSystems Holdings Inc. for possible class-action
shareholder lawsuits in the wake of the aerospace
subcontractors surprise announcement that it would take a
$590-million third-quarter charge related to work on the Boeing
787 Dreamliner and other aircraft programs.
Johnson & Weaver LLP of San Diego said it has launched
an investigation to determine whether officers of Wichita,
Kan.-based Spirit have "engaged in improper conduct or breached
their fiduciary duties" by not disclosing problems that caused
Bronstein, Gewirtz & Grossman LLC, New York, said it is
investigating whether Spirit executives issued "misguided
statements" about the companys business prospects.
Both companies identified themselves as specializing in
class-action securities litigation.
Bronstein, Gewirtz & Grossman said that Spirits
common shares plummeted 32 percent to close at $14.69 on the
New York Stock Exchange following its disclosure of the charges
last week. Spirits announcement "caught the market off
guard" and raised questions about the companys "ability
to forecast performance," Bronstein claimed.
Spirits shares ended last week at $14.70 per share.
They did not trade Monday due to the NYSEs storm-related
Spirit has "not violated the law and is confident that an
investigation would so indicate," the company told
AMM, noting that it understands "certain types of law
firms make such announcements on a routine basis following the
release of disappointing financial news."
The charges included about $184 million tied to
Chicago-based Boeing Co.s 787 program, $163 million
stemming from the wing program for Savannah, Ga.-based
Gulfstream Aerospace Corp.s G650 business jet, $151
million from the BR725 engine nacelle package of the G650, $88
million tied to the wing program for the Gulfstream G280
business jet and $4 million from other combined programs.
Spirit maintained that it carries a "strong balance sheet
(and) a significant backlog," and that its health and long-term
outlook remain "good."