The litigation centers on the Arlington, Virginia-based defense firm’s involvement with the Satellite Communication Augmentation Resource (SCAR) program. Troubles began on January 20, 2026, when the company revealed a government-issued stop work order for its BADGER systems, triggering a 15.77% stock decline. Further instability followed on March 2, when the U.S. Space Force signaled a shift in acquisition strategy, causing shares to fall an additional 17.42%.

The situation culminated on March 10, 2026, when AeroVironment reported a $179 million operating loss for the third quarter of fiscal year 2026. This figure included a $151.3 million impairment charge tied to the company's space division. Following the announcement that the Space Force had formally terminated the SCAR contract, requiring the company to recompete for the program, the stock price dropped another 6.24%.

Investors seeking to participate in the class action may contact Andrew Abramowitz at 215-875-3015 or Caitlin Adorni at 267-764-4865. Berger Montague, a firm with over 55 years of experience in complex civil litigation, is managing the case on behalf of shareholders affected by the valuation volatility during the class period.