MONTREAL — CAE Inc. has reached a deal to settle a class-action lawsuit by shareholders against the company, its former chief executive and its former chief financial officer that will see the defendants pay $38.25 million. Under the proposed agreement, CAE will pay up to $5 million with the remaining amount to be paid by its insurers. The lawsuit alleged the company and executives made misleading statements related to fixed-price contracts in the defence sector that inflated its share price. The defendants denied all of the allegations, however, a statement by lawyers for the plaintiffs said the two sides agreed to settle to avoid the delays and risks associated with continued litigation and trial. The class includes investors who bought CAE shares during the period from Aug. 10, 2022, to May 21, 2024, and still held some or all of the shares at any time between Feb. 14, 2024, and May 22, 2024. A settlement approval hearing is set for Dec. 22 in a Quebec court. This report by The Canadian Press was first published Oct. 2, 2026.
