WICHITA, Kan. (AP) — A federal appeals court says shareholders failed to show that Spirit AeroSystems and four of its executives lied about three manufacturing contracts that resulted in $434.6 million in losses.
Upholding a lower court decision, the 10th U.S. Circuit Court of Appeals ruled Tuesday that the investors behind a class-action lawsuit failed to show the aircraft parts maker or its executives made any material misrepresentations or omissions.
The lawsuit followed an October 2012 announcement that the Wichita-based company recorded $434.6 million forward losses on the three contracts. Spirit AeroSystems' stock price dropped following the announcement.
The appeals court said that while the size of the loss is "undoubtedly significant," it doesn't suggest the four executives knew or recklessly disregarded the risks of Spirit losing money on the three projects.