Lockheed Martin Corporation (LMT) Securities Class Action

The lawsuit is focused on the propriety of Lockheed Martin’s statements concerning performance by two of its four business segments – namely, the Aeronautics and Rotary and Mission Systems (“RMS”) business segments.

In the past, Lockheed Martin has repeatedly assured investors that its “contracts generally allow for the recovery of costs in the pricing of our products and services[,]” the company “identif[ies] and monitor[s] risks to the achievement of the technical, schedule and cost aspects of the contract and assess[es] the effects of those risks on our estimates of total costs to complete the contract[,]” and “[i]ncreases or decreases in profit booking rates are recognized in the current period they are determined and reflect the inception-to-date effect of such changes.”  

The complaint alleges that Lockheed Martin made false and misleading statements while failing to disclose crucial information to investors, including that the company:

• Lacked effective internal controls regarding its purportedly risk-adjusted contracts including the reporting of its risk-adjusted profit booking rate;
• Lacked effective procedures to perform reasonably accurate comprehensive reviews of program requirements, technical complexities, schedule, and risks;
• Overstated its ability to deliver on its contractual commitments in terms of cost, quality and schedule; and
• As a result, it was reasonably likely to report significant losses.

Investors began to learn the truth on January 28, 2025, when Lockheed Martin reported QE and FY ended December 31, 2024 financial results that included $1.8 billion of pre-tax losses in its Aeronautics segment, citing “performance issues” and suggesting possible increases in scope and cost.

Shortly afterward, on April 17, 2025, Lockheed Martin announced that CFO Jay Malave left the company.

Then, on July 22, 2025, the company announced its Q2 2025 financial results that included an additional $950 million pre-tax losses in its Aeronautics segment, again citing “performance issues.” The company also recognized $570 million pre-tax losses in its RMS segment due to problems with its Canadian Maritime Helicopter Program. One analyst reportedly characterized the company’s report as “a ‘kitchen sink’ type quarter as a result of the recent CFO change.”

In response to each of these events, the price of Lockheed Martin shares significantly fell.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the LMT investigation about?

We are 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.

WHAT SHOULD I DO?

I worked at LMT. What should I do?

If you were an employee of LMT, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in LMT, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any LMT investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.