WICHITA, Kan. (AP) – 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 dismissed on Thursday 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.
Melgren ruled shareholders failed to show misleading statements were material to an investor deciding whether to buy or sell stock.
The judge also noted it is unclear whether the company and officers had anything to gain by delaying announcement of the loss.
The stock price immediately plummeted and chief executive officer Jeffrey Turner announced his resignation shortly after the announcement.
In a prepared statement emailed to the media, Fred Malley, Spirit’s director of Corporate Communications and Government relations said, “We are very pleased with the result and believe this vindicates the Company and the four individuals that plaintiffs named as defendants.”