Spirit AeroSystems Holdings, Inc. Inc. (SPR) Accused of Misleading Shareholders
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between October 31, 2019 and January 29, 2020, on October 31, 2019, Spirit filed its 3Q 2019 Form 10-Q with the SEC stating in relevant part that after evaluation, the Company had “concluded that disclosure controls and procedures are effective to provide reasonable assurance that information required…is recorded, processed, summarized and reported.” Despite this assurance, on January 30, 2020, Spirit AeroSystems Holdings, Inc. (SPR) released a press release announcing that following an internal review of Spirit’s accounting process compliance, the Company had determined that it did not comply with its established accounting processes related to certain potential contingent liabilities. As a result, Spirit’s Chief Financial Officer and Principal Accounting Officer resigned from their positions. The review is ongoing to determine whether the Company’s financial statements will be materially impacted. On this news, Spirit’s shares fell approximately 4% to close at $65.08 per share.
