Lockheed Martin ($LMT) Classified Losses, Internal Controls Failure, and Misleading Guidance Case

Court: S.D. New York

Case: 1:25-cv-06197

• LMT investors filed a claim against Lockheed Martin for concealing material weaknesses in contract oversight, downplaying the risk of multi-billion-dollar project losses, and issuing misleading guidance tied to key classified and international programs.
• After disclosing unexpected $1.7 billion and $1.6 billion in program losses across three quarters, LMT dropped a combined 26.7%, including 6.12% on October 22, 2024, 9.2% on January 28, 2025, and 10.8% on July 22, 2025.
• LMT investors can join this case to be notified about potential recovery.

Case Details:

Between January 23, 2024, and July 21, 2025, Lockheed Martin repeatedly told investors it maintained effective internal controls and was executing successfully on key classified and international defense programs. The company emphasized profitability, disciplined booking rates, and program stability across its Aeronautics and Rotary & Mission Systems segments.

In reality, Lockheed lacked adequate systems for program risk review and misrepresented its ability to meet cost, quality, and schedule targets. Executives knew of compounding issues in at least one classified Aeronautics program, the Canadian Maritime Helicopter Program, and the Turkish Utility Helicopter Program but failed to inform investors.

On October 22, 2024, Lockheed revealed $80 million in classified and radar-related losses. LMT fell 6.12%.

On January 28, 2025, the company disclosed a massive $1.7 billion pre-tax charge tied to classified programs. Shares dropped 9.2%.

Then on July 22, 2025, Lockheed announced another $1.6 billion in losses—$950 million on a classified Aeronautics contract, $570 million in Canada, and $95 million in Turkey. LMT plunged 10.8%.

Based on these events, LMT investors filed a claim against Lockheed Martin, alleging the company:

• It misled investors about internal controls and program execution discipline.
• It failed to disclose known risks and losses tied to classified and international contracts.
• It maintained inflated forecasts despite ongoing performance deterioration.

Investors believe Lockheed concealed mounting losses to sustain confidence in its operational strength and avoid repricing risk in defense contracts.