KTMC files securities fraud lawsuit against AEVEX Corp

RADNOR, Pa., A national securities litigation law firm, Kessler Topaz Meltzer & Check, LLP (KTMC), has filed a securities fraud class action lawsuit against AEVEX Corp. (NYSE: AVEX) on behalf of investors who purchased or acquired the company's Class A common stock between April 17, 2026, and June 4, 2026. The lawsuit, filed in the United States District Court for the Southern District of California, alleges that the company made material misstatements and omissions in its registration statement and related prospectus issued during its initial public offering (IPO).

According to the complaint, AEVEX Corporation, a military technology contractor, is accused of failing to disclose a pre-arranged plan between Madison Dearborn Partners, LLC (Madison), a private equity firm that acquired a majority stake in AEVEX in 2020, and certain company insiders. This plan allowed for a secondary public offering (SPO) of shares shortly after the IPO, despite the company's commitment to follow a 180-day "lock-up" period to prevent insiders from selling their shares. The "lock-up" period was intended to reassure investors that insiders would not flood the market with shares.

On June 1, 2026, just over a month after the IPO, AEVEX filed a registration statement announcing its intention to sell eight million more shares of Class A common stock to the public via an SPO. On June 3, 2026, the company followed through with this plan, selling eight million shares. The SPO documents revealed that at least two company insiders had agreed to waive the lock-up restrictions, allowing Madison to sell more than two million shares. The rest of the nearly six million shares sold were newly issued, with the proceeds used by AEVEX to purchase an equivalent number of Madison's other holdings.

These disclosures sent shockwaves through the market. AEVEX's Class A common stock price fell by approximately 16% on June 2, 2026, and continued to drop by an additional 7% on June 5, 2026. Investors who purchased shares during the specified class period are urged to seek legal advice, as they may be entitled to compensation.

KTMC is encouraging affected investors to contact the firm to discuss their legal rights and explore recovery options. Investors who purchased or acquired Aevex Class A common stock and have lost money as a result of the alleged fraud are advised to file for lead plaintiff status by October 20, 2026. KTMC will provide a free case evaluation and representation on a contingency fee basis, meaning there is no cost to the investor.

"AEVEX's failure to disclose the pre-arranged plan for the SPO and the subsequent sale of shares by insiders without a lock-up period constitutes material misrepresentations and omissions," Jonathan Naji, Esq., an attorney with KTMC, stated. "Investors who suffered losses as a result of these alleged actions are encouraged to take action now."

KTMC, headquartered in Radnor, Pennsylvania, is a leading plaintiff-side law firm with offices in California. The firm has recovered over $25 billion for its clients and the classes they represent. KTMC has been recognized for its work in securities litigation, receiving numerous accolades from peers and the legal media.