AeroVironment Faces Class Action Over SCAR Program Contract Losses

The lawsuit, filed in the Eastern District of Virginia as Norrell v. AeroVironment, Inc., claims the defense contractor failed to disclose mounting competition for the Satellite Communication Augmentation Resource (SCAR) program. According to the complaint, these omissions artificially inflated the company’s financial prospects following its acquisition of BlueHalo, LLC.

Legal trouble intensified in early 2026 when the U.S. government issued a stop-work order on the BADGER systems intended for the SCAR program. The stock price dropped 16% on the news. Further volatility followed in March when the U.S. Space Force moved to reopen the program to new acquisition strategies, triggering a 17% decline. By March 10, 2026, AeroVironment reported a $179 million operating loss for the third quarter, largely attributed to a $151.3 million goodwill impairment linked to the failed contract. Shares slipped an additional 6% following the disclosure that the company would be forced to recompete for the work.

Robbins Geller Rudman & Dowd LLP is representing the plaintiffs, inviting those with substantial losses to step forward as lead counsel. Under the Private Securities Litigation Reform Act of 1995, the appointed lead plaintiff will oversee the litigation process on behalf of the class.