Lockheed Martin Faces Investor Scrutiny Over Disclosure Missteps

Lockheed Martin is facing a securities class action lawsuit over alleged false and misleading statements about the performance of its Aeronautics and Rotary and Mission Systems segments. The lawsuit claims the company lacked effective internal controls, overstated its ability to deliver on contractual commitments, and was reasonably likely to report significant losses. The case is pending in the Southern District of New York, with a lead plaintiff deadline of September 26, 2025.

Lockheed Martin (LMT) is under scrutiny following a securities class action lawsuit that alleges the company made false and misleading statements about the performance of its Aeronautics and Rotary and Mission Systems (RMS) segments. The lawsuit, styled Khan v. Lockheed Martin Corporation, No. 1:25-cv-06197 (S.D.N.Y.), seeks to represent investors who purchased or otherwise acquired LMT securities between January 23, 2024, and July 21, 2025 [1].

The lawsuit comes in the wake of Lockheed's Q2 2025 financial results, which resulted in a significant drop of almost 11% in the price of the company's shares on July 22, 2025 [1]. The complaint alleges that Lockheed Martin made false and misleading statements while failing to disclose crucial information to investors, including:

- Lacking effective internal controls regarding its purportedly risk-adjusted contracts and the reporting of its risk-adjusted profit booking rate.
- Lacking effective procedures to perform reasonably accurate comprehensive reviews of program requirements, technical complexities, schedule, and risks.
- Overstating its ability to deliver on its contractual commitments in terms of cost, quality, and schedule.

As a result, it was reasonably likely that the company would report significant losses [1].

Investors began to learn the truth on January 28, 2025, when Lockheed Martin reported its QE and FY ended December 31, 2024 financial results, including $1.8 billion of pre-tax losses in its Aeronautics segment, citing "performance issues" and suggesting possible increases in scope and cost [1]. Shortly afterward, on April 17, 2025, the company announced that its CFO, Jay Malave, had left the company. Then, on July 22, 2025, Lockheed Martin announced its Q2 2025 financial results, which included an additional $950 million pre-tax losses in its Aeronautics segment and $570 million pre-tax losses in its RMS segment due to problems with its Canadian Maritime Helicopter Program [1].

The price of Lockheed Martin shares significantly fell in response to these events. Reed Kathrein, the Hagens Berman partner leading the investigation, stated, "We're investigating whether Lockheed Martin may have misled investors about the full extent of performance and financial problems within Aeronautics and RMS and whether the company timely recorded charges and changes in booking rates" [1].

Investors with substantial losses are encouraged to submit their losses now, with a lead plaintiff deadline of September 26, 2025. For more information, visit www.hbsslaw.com/investor-fraud/lmt or contact Hagens Berman at 844-916-0895 [1].

References:

[1] https://www.prnewswire.com/news-releases/lockheed-martin-lmt-faces-investor-scrutiny-over-companys-disclosures-about-aeronautics-and-rms-segments-performance-securities-class-action-pending----hagens-berman-302521457.html