AeroVironment Faces Class Action Over SCAR Program Collapse

The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, targets AeroVironment and several of its top officials. It covers individuals and entities that acquired company securities between June 25, 2025, and March 10, 2026. Plaintiffs contend that during this period, executives characterized the SCAR program—focused on modernizing satellite tracking antennas—as a major growth driver, claiming the work was on track despite mounting competitive pressures.

The company's narrative shifted abruptly in early 2026. On January 20, AeroVironment disclosed a stop-work order on its BADGER antenna systems, triggering a 15.77% stock slide. Further volatility ensued in March when the U.S. Space Force revealed plans to reassess the program, followed by the formal termination of the contract. By the time the company reported a $179 million operating loss for the third quarter, which included a $151.3 million impairment charge, shares had suffered multiple rounds of sharp declines. The U.S. Space Force ultimately opted to pivot toward off-the-shelf commercial solutions rather than the bespoke systems AeroVironment had been contracted to provide. Investors seeking to serve as lead plaintiff must petition the court by July 27, 2026.