$38.25M CAD CAE Inc. Securities Settlement

Current Status

Claims are open. The deadline to submit a claim, online or by mail, is March 22, 2027, and every claim needs identification and brokerage records. The Superior Court of Québec authorized the class action for settlement purposes on August 26, 2026 and will hold a hearing on December 22, 2026 to decide whether to approve the settlement. The settlement has not been approved, and the administrator will not review claims or make payments unless it is.

What Changed Recently?

CAE Inc., the Montréal-based maker of flight simulators and pilot training, agreed on July 31, 2026 to settle a shareholder class action for $38.25 million CAD. The case is Mouvement d’éducation et de défense des actionnaires v. CAE inc. et al., No. 500-06-001312-244, in the Superior Court of Québec. On August 26, 2026 the court authorized the class action and granted leave to bring a secondary-market claim under the Québec Securities Act, both for settlement purposes only, and the notice to shareholders went out on October 2, 2026, which opened the claim period.

The lawsuit, filed in June 2024 against CAE and its former chief executive and chief financial officer, alleges that public documents and statements contained misrepresentations and failed to disclose material changes, including about eight fixed-price contracts in CAE’s defence and security business that the plaintiff says weighed disproportionately on that segment’s profitability. It alleges that shares bought after August 10, 2022 traded at an inflated price until corrective information came out on May 21, 2024. The defendants deny all of the allegations and any liability, and no court has found them liable.

Who Qualifies?

The class is everyone who bought one or more CAE common shares between August 10, 2022 and May 21, 2024, inclusive, and still held some or all of those shares at any time between February 14, 2024 and May 22, 2024, inclusive. Both conditions apply: a purchase inside the class period, and shares still held during the February-to-May 2024 window.

The settlement agreement defines the eligible shares as CAE common shares listed on the Toronto Stock Exchange and the New York Stock Exchange, and the class definition sets no residency requirement. The defendants, CAE’s past and current executive officers and directors and those of its subsidiaries, the individual defendants’ immediate families, and entities any of them control are excluded. Anyone who has their own lawsuit against the defendants over the same facts and does not discontinue it by December 1, 2026 is treated as having opted out.

How Much Can You Get?

There is no fixed amount per share. After the court-approved class counsel fees and administration expenses are paid, the rest of the $38.25 million CAD is divided among approved claimants in proportion to each claimant’s compensable loss. Class counsel, Scott+Scott CA ULC and Belleau Lapointe LLP, will ask the court for fees of up to 25% of the fund, plus disbursements and applicable taxes, all paid out of the settlement amount.

Each compensable loss is calculated under the guidelines in the Québec Securities Act. The calculation looks at how many CAE shares the claimant held on August 9, 2022, the shares bought during the class period, and whether they were sold during the class period, sold in the ten trading days after it, or still held, along with the prices paid and received. The full method is in sections 5 to 13 of the plan of allocation. Some claimants will have a compensable loss of zero, and a calculated payment under $15 is not paid out but redistributed to the other claimants.