Lockheed Martin Faces Securities Class Action Lawsuit Over Alleged Financial Misrepresentations

Strategic Insights -

Lockheed Martin Corporation has been embroiled in a securities class action lawsuit alleging that the company provided investors with a misleading picture of its financial health by failing to disclose inadequate internal controls to assess program risks. Investors who bought shares between January 23, 2024, and July 21, 2025, may be eligible for compensation. The lawsuit claims that Lockheed Martin overstated its ability to deliver on contracts in its Aeronautics and Rotary and Mission Systems (RMS) segments, resulting in significant losses that were not disclosed to investors.

Key Takeaways:

  • The lawsuit, Khan v. Lockheed Martin Corporation, was filed on behalf of investors who suffered substantial losses due to the company's alleged financial misrepresentations.
  • Lockheed Martin is accused of failing to disclose inadequate internal controls to assess program risks, leading to significant losses in its Aeronautics and RMS segments.
  • The company reported $1.8 billion in pre-tax losses in its Aeronautics segment on January 28, 2025, and an additional $950 million in pre-tax losses for the Aeronautics segment and $570 million in pre-tax losses for the RMS segment on July 22, 2025.
  • The series of negative disclosures led to major stock drops, with shares falling almost 11% on the final disclosure.
  • Hagens Berman, a national plaintiffs' rights law firm, is investigating the claims on behalf of investors who suffered substantial losses.
  • The firm is examining whether the massive, successive losses were a foreseeable consequence of poor internal controls and a failure to accurately communicate the company's risks to investors.
  • Whistleblowers with non-public information regarding Lockheed Martin may be eligible for rewards totaling up to 30 percent of any successful recovery made by the SEC.

Statistics:

  • 1.8 billion: in pre-tax losses in Lockheed Martin's Aeronautics segment reported on January 28, 2025.
  • 950 million: in additional pre-tax losses for Lockheed Martin's Aeronautics segment reported on July 22, 2025.
  • 570 million: in pre-tax losses for Lockheed Martin's RMS segment reported on July 22, 2025.
  • 11%: decrease in Lockheed Martin's stock price following the final disclosure.
  • 30%: maximum reward for whistleblowers under the SEC Whistleblower program.
  • 2.9 billion: amount of compensation secured by Hagens Berman in complex litigation cases.

Sources:

  • GlobeNewswire: "Securities Class Action Lawsuit Filed Against Lockheed Martin Corporation"
  • Hagens Berman: "Lockheed Martin Class Action Lawsuit"