According to the law firm press release, Orbital develops and produces aerospace, defense, and aviation-related products for the U.S. Government, allied nations, prime contractors, and other customers in the United States and internationally. The Company was formed through a February 2015 merger between Orbital Sciences Corporation and Alliant Techsystems Inc. In September 2012, Orbital entered into a $2.3 billion long-term contract (the “Contract”) with the U.S. Army to manufacture and supply small caliber ammunition at the U.S. Army’s Lake City Army Ammunition Plant.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Orbital lacked effective control over financial reporting; (ii) as a result, the Company failed to record an anticipated loss on the Contract after the loss became evident in 2015, as required by generally accepted accounting principles; and (iii) as a result of the foregoing, Orbital’s public statements were materially false and misleading at all relevant times.
On November 10, 2016, the Court appointed Lead Plaintiff and Counsel. Lead Plaintiff filed an amended complaint on April 24, 2017.
On September 26, 2017, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss. Plaintiffs were given leave to file an amended complaint. On October 10, Lead Plaintiff filed an amended Complaint. On October 24, Defendants filed a Motion to Dismiss the amended Complaint. On March 2, 2018, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss. On August 29, the Court granted the parties' joint motion to stay this case pending the parties' private mediation efforts.
On January 30, 2019, the parties entered into a Stipulation of Settlement. The Court issued an Order preliminarily approving the Settlement on February 22, 2019.