A federal judge has thrown out the class-action lawsuit brought by investors of aircraft parts maker Spirit AeroSystems.
U.S. District Judge Eric Melgren on Thursday dismissed the 2013 lawsuit alleging the firm and four of its officers made misleading statements that artificially inflated the stock price before the company recorded a $590 million loss on six contracts in October 2012.
Spirit AeroSystems’ stock price dropped 30 percent following that announcement.
Melgren ruled shareholders failed to show misleading statements were material to an investor deciding whether to buy or sell stock.
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The judge also noted it’s unclear whether the company and officers had anything to gain by delaying announcement of the loss.
CEO Jeffrey Turner announced his resignation shortly after the announcement.