AEVEX Corp. Investors Sued Over IPO Lock-Up Agreement

Kahn Swick & Foti, LLC, a leading securities litigation law firm, has notified investors in AEVEX Corp. (NYSE: AVEX) of a class action lawsuit. The lawsuit, filed in the United States District Court for the Southern District of California, seeks to recover losses on behalf of investors who purchased or otherwise acquired Aevex's publicly traded Class A common stock between April 17, 2026, and June 4, 2026, inclusive.

According to the complaint, AEVEX and certain of its executives are accused of concealing a pre-arranged plan between Madison, which owned 100% of AEVEX's common stock, and the Underwriter Defendants. The plan reportedly involved prematurely overriding the commitment requiring a 180-day lock-up after the initial public offering (IPO) to prevent Madison from selling its shares. The lawsuit alleges that AEVEX represented that a 180-day "lock-up" would prevent Madison from selling its Class A common stock or converting its Class B shares or LLC Units into Class A common stock for public sale until at least October 13, 2026. In truth, the company is accused of concealing the pre-arranged plan between Madison and the Underwriter Defendants to abrogate that commitment early, allowing for a secondary public offering (SPO) shortly after the IPO. This SPO is said to have enabled Madison to reap over $200 million, with the Underwriter Defendants sharing in an additional $8-plus million in fees.

KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based on total settlement value. The firm serves a variety of clients, including public and private institutional investors, and retail investors, in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies.