Did You Own AeroVironment Stock Before June 24, 2025?

Grabar Law Office is investigating potential claims on behalf of AeroVironment, Inc. (“AeroVironment” or the “Company”) concerning allegations that certain current and former officers and directors breached their fiduciary duties in connection with the Company’s disclosures concerning its SCAR/BADGER program, financial reporting, internal controls, and related matters.

If you purchased or otherwise acquired AeroVironment common stock before June 24, 2025 and continue to hold shares, you may have rights as a long-term shareholder.

Contact Grabar Law Office for a confidential and complimentary evaluation of your rights as an AeroVironment shareholder. Email Joshua Grabar at jgrabar@grabarlaw.com or call us at 267-507-6085.

What Is the AeroVironment Investigation About?

On May 1, 2025, AeroVironment completed its approximately $4.1 billion acquisition of BlueHalo, a defense technology company with significant operations in space, cyber, directed energy, artificial intelligence, and electronic warfare.

An important component of the BlueHalo acquisition was BlueHalo’s participation in the U.S. Space Force’s Satellite Communications Augmentation Resource (“SCAR”) program. Under the SCAR program, BlueHalo had been selected to provide military satellite command-and-control ground stations known as Broad Area Deployable Ground Terminal Enabling Resilient Communications (“BADGER”) systems. The value of the SCAR contract had increased to approximately $1.7 billion.

A recently filed federal securities fraud class action complaint alleges that, following the acquisition, AeroVironment, Inc. (NASDAQ: AVAV), through certain of its senior officers and directors, repeatedly emphasized the importance of the SCAR program and BADGER to the Company’s future growth while failing to adequately disclose material risks concerning AeroVironment’s continued participation in the program. It is alleged that Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) AeroVironment understated the likelihood that it would imminently face competition from other vendors for the work it performed in connection with the SCAR program and the U.S. Space Force’s ongoing efforts to modernize the SCN; (ii) accordingly, Defendants overstated AeroVironment’s business and financial prospects; and (iii) as a result, Defendants’ public statements were materially falseand misleading at all relevant times.

Allegations Concerning the $1.7 Billion SCAR Program

According to the allegations, AeroVironment represented that the SCAR program was an important growth opportunity for the combined company.

Among other things, AeroVironment’s management allegedly told investors that:

• the Company had “won” the SCAR program of record;
• the approximately $1.7 billion program provided a significant opportunity for future growth;
• work associated with BADGER and SCAR was progressing as expected;
• the U.S. Space Force was satisfied with the BADGER system and seeking additional capabilities; and
• AeroVironment was well positioned to continue producing and delivering BADGER systems.

It is alleged, however, that AeroVironment’s participation in the SCAR program was not as secure as investors had been led to believe.

Specifically, the complaint alleges that the Company failed to adequately disclose that:

• AeroVironment’s continued participation in the SCAR program and its ability to produce BADGER systems were not guaranteed;
• AeroVironment faced a substantial risk of competition from other defense contractors for work associated with SCAR and the U.S. Space Force’s modernization efforts;
• the Company faced risks that could cause it to lose some or all of the anticipated revenue associated with SCAR;
• AeroVironment allegedly overstated the security of its continued relationship with the U.S. Space Force and the SCAR program; and
• the Company allegedly failed to maintain adequate internal controls and risk-oversight mechanisms.

January 2026: U.S. Government Issues Stop-Work Order

On January 20, 2026, AeroVironment announced that the U.S. Government had issued a stop-work order concerning the Company’s agreement to deliver BADGER systems under the SCAR program.

The Company stated that the pause would permit the parties to negotiate an amended agreement concerning the future of the program and indicated that it expected to continue providing products and capabilities for SCAR. AeroVironment’s stock price declined approximately 15.7%, from $392.86 per share on January 16, 2026 to $330.89 per share on January 20, 2026.

March 2026: SCAR Program Reopened to Competition

The situation deteriorated further in March 2026.

On March 2, 2026, industry publication SpaceNews reported that the Department of Defense was reassessing the SCAR program and seeking proposals from vendors other than AeroVironment.

AeroVironment shares declined approximately 17.4% on this news, falling from $252.25 per share on February 27, 2026 to $208.32 per share on March 2, 2026.

Despite these developments, AeroVironment subsequently stated that it remained in active negotiations with the U.S. Space Force and expressed confidence in its ability to successfully compete and deliver systems.

March 10, 2026: Space Force Terminates the SCAR Contract

On March 10, 2026, AeroVironment disclosed that it had been unable to reach an agreement with the U.S. Space Force regarding the SCAR program.

CEO Wahid Nawabi announced that the Space Force had terminated the existing contract for convenience and that AeroVironment would have to recompete for the program under revised requirements.

The Company also announced a $151.3 million goodwill impairment associated with its space business following the SCAR stop-work order and reduced its fiscal 2026 revenue guidance.

According to the complaint, AeroVironment shares declined an additional approximately 6.2% following disclosure of the contract termination.

June 2026: AeroVironment Announces Restatement and Material Weaknesses

In its March 2026 quarterly report, AeroVironment had reported a $151.3 million goodwill impairment charge and represented that its disclosure controls and procedures were effective as of January 31, 2026.

On June 22, 2026, however, AeroVironment announced that the previously issued financial statements required restatement and should no longer be relied upon.

The Company disclosed that its goodwill impairment charge had been understated by approximately $89.4 million, increasing the impairment from $151.3 million to approximately $240.7 million — a roughly 59% increase.

AeroVironment also disclosed a newly identified material weakness in its internal control over financial reportingand acknowledged that its disclosure controls and procedures as of January 31, 2026 had been ineffective.

AeroVironment's stock declined approximately 10.7% following these disclosures.

Alleged Insider Stock Sales

It is further alleged that certain AeroVironment insiders sold Company stock during the period in which the Company's share price was allegedly artificially inflated.

The underlying complaint identifies stock sales by CEO Wahid Nawabi, former CFO Kevin McDonnell, and director Stephen Page, and alleges that the three received millions of dollars in aggregate proceeds from those transactions.  It is alleged that these individuals were unjustly enriched through the challenged stock sales.

AeroVironment Shareholders: Contact Grabar Law Office

If you owned AeroVironment common stock before June 24, 2025 and continue to hold shares, Grabar Law Office would like to speak with you about the investigation and your potential rights as a shareholder. Contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.  You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.

There is no cost or obligation to speak with us.