The litigation, pending in the United States District Court for the Southern District of California, centers on claims that AEVEX's registration statement falsely characterized the lock-up on Class A shares as binding through October 13, 2026. According to the complaint, the company, its private equity owner, and underwriter representatives held a pre-arranged understanding to waive these restrictions to facilitate a secondary offering of 8,000,000 shares. Investors who purchased shares between April 17, 2026, and June 4, 2026, are represented in the action.

The market reacted sharply to the subsequent disclosures, with AVEX shares falling approximately 16% on June 2, 2026, and another 7% on June 5, 2026. Joseph E. Levi of Levi & Korsinsky LLP, the firm leading the suit, stated that the complaint questions whether purchasers were provided a complete picture of insider sale restrictions before committing capital. Investors seeking to serve as lead plaintiff in the case must file motions with the court by October 20, 2026.