According to the Complaint, Mesa Air Group Incorporated operates as the holding company for Mesa Airlines, Inc., which provides regional air carrier services under capacity purchase agreements (“CPA”) with American Airlines and United Airlines.
On or about July 13, 2018, Mesa Air Group filed with the SEC a Registration Statement on Form S-1, which in combination with subsequent amendments of Forms S1/A and filed pursuant to Rule 424(b)(2), would be used for the IPO.
In August 2018, Defendants held the IPO, offering approximately 11 million shares of common stock to the investing public at $12.00 per share.
The Complaint alleges that the Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) Mesa Air Group's operational performance was poor and below industry standards; (2) Mesa Air Group had a shortage of qualified mechanics and maintenance personnel; (3) Mesa Air Group had an inadequate number of spare aircraft and parts; (4) Mesa Air Group did not have a strong track record of reliable performance; (5) then-existing "risks" had already materialized; (6) Mesa Air Group knew of undisclosed adverse trends and uncertainties at the time of the IPO; and (7) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.
On June 22, 2020, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on August 17. Defendants filed a Motion to Dismiss the amended Complaint on October 1. On July 22, 2021, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.
On January 24, 2022, the Court issued an Order certifying the case to proceed as a class action. The parties notified the Court on March 9 that they had reached a Settlement in principle. On May 6, the parties entered into a Stipulation and Agreement of Settlement.