SAN FRANCISCO — A securities class action has been initiated against Lockheed Martin Corporation, aimed at protecting investors who purchased shares from January 23, 2024, to July 21, 2025. The case, known as Khan v. Lockheed Martin Corporation, alleges that the defense contractor misrepresented its financial stability by not disclosing weaknesses in its internal control systems that assess risks related to various programs.
The lawsuit highlights a concerning trend of disclosures that caused Lockheed Martin’s stock price to plummet. According to the complaint, the company reportedly overstated its operational capabilities, particularly within its Aeronautics and Rotary and Mission Systems (RMS) divisions, while concealing the risks of potential losses from its investors.
Several significant disclosures revealed the company’s precarious financial standing. On January 28, 2025, Lockheed Martin reported $1.8 billion in pre-tax losses within its Aeronautics segment. This was followed by the departure of its Chief Financial Officer on April 17, 2025. The most damaging disclosure came on July 22, 2025, when the company announced an additional $950 million in pre-tax losses for the Aeronautics segment and another $570 million for the RMS segment, primarily due to challenges with the Canadian Maritime Helicopter Program. Each of these announcements triggered steep declines in the stock price, culminating in nearly an 11% drop following the final report.
The national law firm Hagens Berman is spearheading the investigation into these claims, seeking to determine whether the substantial financial losses were symptomatic of broader systemic issues rather than isolated incidents. The firm emphasizes that such recurrent losses raise questions about the company’s internal controls and transparency regarding risk disclosure.
Reed Kathrein, a partner at Hagens Berman, indicated that the repeated nature of these issues suggests a persistent concern that could have been communicated more clearly to investors. "Our priority is to ascertain whether company officials were aware of the deficiencies in their internal controls and if they adequately informed stakeholders about the risks leading to these significant write-downs," Kathrein stated.
Investors who suffered significant losses during this period are encouraged to reach out to the firm. Those with information relevant to the investigation may also consider contributing as potential whistleblowers. Under the SEC Whistleblower program, individuals providing original information could receive rewards of up to 30% of any successful recovery achieved.
Hagens Berman is recognized for its dedication to holding corporations accountable for their actions. With a history of securing over $2.9 billion for clients affected by corporate malfeasance, the firm aims to provide justice and restitution to those who have faced losses in this instance.
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