Law firm Faruqi & Faruqi LLP is investigating potential claims against Lockheed Martin Corp. (NYSE:LMT) as investors face a September 26 deadline to seek lead plaintiff status in a federal securities class action.
Securities Class Action Deadline Approaches
The investigation targets investors who purchased securities between Jan. 23, 2024, and July 21.
The complaint alleges Lockheed Martin and executives violated federal securities laws by making misleading statements about internal controls, contract delivery capabilities, and risk assessment procedures.
Three Major Loss Announcements Rock Stock
Lockheed Martin disclosed three significant loss events that triggered sharp stock declines over eight months. The company’s shares fell from $614.61 on Oct. 21, 2024 to $410.74 on July 22, 2025 – a 33% decline.
On Oct. 22, 2024, the company announced $80 million in losses on classified programs due to “higher than anticipated costs.” Shares dropped 6.12% to $576.98 on heavy volume.
The losses escalated when Lockheed Martin recorded $1.7 billion in pre-tax losses across Aeronautics ($555 million) and Missiles and Fire Control ($1.3 billion) segments. Net earnings fell to $5.3 billion ($22.31 per share) from $6.9 billion ($27.55 per share) in 2023.
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July Disclosure Reveals Additional $1.6 Billion Losses
The most recent disclosure on July 22, 2025 revealed another $1.6 billion in pre-tax losses on classified programs. This included $950 million from the Aeronautics Classified program due to “design, integration, and test challenges,” plus $570 million from the Canadian Maritime Helicopter Program and $95 million from the Turkish Utility Helicopter Program.
Net earnings collapsed to just $342 million ($1.46 per share), triggering a 10.8% stock decline to $410.74 on unusually heavy trading volume.
Government Stake Speculation Boosts Defense Sector
Despite ongoing losses, defense stocks gained momentum after Commerce Secretary Howard Lutnick suggested the Trump administration might acquire ownership stakes in major contractors. Lutnick noted Lockheed Martin derives “97% of their revenue from the U.S. government” and functions as “basically an arm of the U.S. government.”
This follows the administration’s recent 9.9% equity stake acquisition in Intel Corp. (NASDAQ:INTC) for $8.9 billion, signaling potential government investment in strategic defense contractors.
LMT’s current market cap stands at $106.10 billion with a price to earnings ratio of 25.59 and a 2.90% dividend yield. The stock trades near yearly lows at $454.47 with a 52-week range of $410.11-$618.95.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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