Spirit AeroSystems $29.2M Securities Class Action Settlement

Investors who purchased or otherwise acquired publicly traded Class A common stock of Spirit AeroSystems Holdings Inc. between April 8, 2020, and Sept. 7, 2023, and suffered damages may be eligible to claim a cash payment from a class action settlement.

Spirit AeroSystems Holdings Inc. agreed to pay $29.2 million to settle a class action lawsuit alleging the company and certain executives misled investors about the quality and safety of its products, including 737 Max aircraft fuselages. The lawsuit claimed these misstatements inflated the company’s stock price and caused investor losses when they learned the truth.

Who is eligible to file a claim?

Class members must meet all of the following criteria:

They purchased or otherwise acquired publicly traded Spirit AeroSystems Class A common stock between April 8, 2020, and Sept. 7, 2023, inclusive.
They suffered damages due to the alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Financial institutions that purchased Spirit AeroSystems Class A common stock on behalf of beneficial owners must forward the notice and claim form to those investors or provide their contact information to the claims administrator.

How much is the securities payout?

The total settlement fund is $29,200,000. The settlement administrator will distribute the fund, minus deductions for taxes, notice and administration costs, attorneys' fees and expenses, to eligible class members.

The settlement administrator will determine each class member's recognized claim based on several factors, including:

The number of shares of Spirit AeroSystems Class A common stock they purchased or otherwise acquired during the class period
The total number and size of valid claims all class members submit
The alleged per-share price inflation at the time of each purchase and sale, reflecting changes in market value after corrective disclosures
The application of the statutory 90-day lookback provision, which may limit recoverable losses based on average closing prices after Sept. 7, 2023

The settlement administrator will distribute payments on a pro rata basis according to a court-approved plan of allocation:

The estimated average recovery is $0.34 per eligible share before deductions for taxes, notice and administration costs, and attorneys’ fees and expenses. Actual payments may be higher or lower depending on the total number of valid claims and each claimant’s recognized loss.
The administrator calculates each claimant’s payment using a recognized loss formula that considers when they bought and sold Spirit AeroSystems Class A common stock and how long they held the shares during periods of alleged artificial inflation.

Class members who sold all shares before April 14, 2023, have a recognized loss amount of $0.
Class members who sold shares between April 14, 2023, and Sept. 7, 2023, have a recognized loss equal to the lesser of:

The amount of artificial inflation at purchase minus the inflation at sale or
The purchase price minus the sale price.

Class members who sold shares during the 90-day lookback period after Sept. 7, 2023, have a recognized loss equal to the least of:

The inflation at purchase
The purchase price minus the sale price or
The purchase price minus the 90-day lookback value on the sale date, which averaged $20.82 per share.

Class members who held shares through the end of the 90-day lookback period have a recognized loss equal to the lesser of:

The inflation at purchase or
The purchase price minus the average closing price of $20.82 per share during that period

Class members who purchased shares on or after Sept. 7, 2023, have a recognized loss amount of $0.

The administrator will reduce all payments on a pro rata basis if total recognized claims exceed the net settlement fund.
Claimants whose calculated payment is less than $10 will not receive a payout.

Payout calculation

The calculation is (number of eligible shares × recognized loss per share = recognized claim) then (class member’s recognized claim / total recognized claims for all class members) × net settlement fund = class member’s payment.

Alleged per-share inflation by period:

April 8, 2020, to April 13, 2023: $11.96 per share
April 14, 2023, to May 2, 2023: $5.26 per share
May 3, 2023, to Aug. 1, 2023: $4.47 per share
Aug. 2, 2023, to Aug. 23, 2023: $2.58 per share
Aug. 24, 202,3 to Sept. 6, 2023: $0.37 per share
Sept. 7, 2023, and after: $0 per share

How to claim a settlement payment

Class members can file a claim online or download, print, and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Jan. 30, 2026.

Settlement administrator's mailing address: Spirit AeroSystems Holdings Inc. Securities Litigation, c/o Epiq Systems Inc., P.O. Box 2817, Portland, OR 97208-2817

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security or full taxpayer identification number.

They must also provide purchase and sale information, including:

Trade dates
Number of shares purchased or sold
Total purchase or sale price

Claimants must include documentation to support their transactions in Spirit AeroSystems Class A common stock. Acceptable forms of proof include:

Broker confirmation slips
Broker account statements
Authorized statements from a broker containing the transaction details found in a confirmation slip
Other documents the settlement administrator deems adequate

Failure to provide sufficient documentation may result in claim rejection.

Payout options

The settlement administrator will issue payments by paper check payable to the authorized claimant (the beneficial account owner).

$29.2 million settlement fund

The $29,200,000 settlement fund includes:

Notice and administration costs: To be determined
Attorneys’ fees: Up to $8,760,000
Attorneys’ expenses: Up to $213,000
Payments to eligible class members: The remainder of the fund

Important dates

Deadline to request exclusion: Dec. 19, 2025
Fairness hearing: Jan. 16, 2026
Deadline to file a claim: Jan. 30, 2026

When is the Spirit AeroSystems securities settlement payout date?

The settlement administrator will issue payments to eligible class members after it resolves all appeals and the court grants final approval of the settlement.

Why was there a class action settlement?

The class action lawsuit alleged Spirit AeroSystems Holdings Inc. and certain executives violated federal securities laws by making false or misleading statements about the quality and safety of its products, including 737 MAX fuselages. The plaintiffs claimed these misstatements inflated the stock price and caused investor losses when the truth emerged.

The defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the costs, risks and delays of further litigation.