Bernstein Liebhard, a United States (US)-based law firm, filed a lawsuit against RTX and is inviting investors to join in the class action motion that alleges that the company misled its investors about the state of the Pratt & Whitney Geared Turbofan (GTF) engine.
A US-based law firm, Bernstein Liebhard, has sued RTX and is seeking investors to join the class action complaint. The lawsuit claims that RTX misled investors about the condition of the Pratt & Whitney Geared Turbofan (GTF) engine.
The release stated, "Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period," adding that the defendants, specifically RTX, failed to alert investors to the fact that the GTF engines were impacted by a quality control problem at least since 2015. It will have to "recall and reinspect many of its GTF airplanes, affecting customers and harming its business" due to the quality control issue.
On July 25, 2023, RTX's share price closed at $87,10 after dropping 10.2% in response to the news. The company's stock price finished at $85,47 on August 7, 2023, while the Year-to-Date (YTD) peak closing price occurred on April 18, 2023, at $104,66.
Investors who bought RTX shares or other securities between February 8, 2021, and July 25, 2023, were asked to file a lawsuit no later than October 2, 2023.
On August 8, 2023, Bernstein Liebhard filed 12 further lawsuits in the US against various companies, and on the same day, it also announced its petition against RTX.
Pratt & Whitney has discovered an unusual problem in the powder metal used to construct some of its engines, according to an announcement from RTX, the parent company of the engine manufacturer. certain engine parts will require accelerated fleet inspection” on July 25, 2023.
The PW1100G engine, which powers the Airbus A320neo aircraft family, would be subject to the examinations, which would include 200 accelerated inspections by mid-September 2023 and "accelerated removals and inspections within the next nine to twelve months".
RTX stated, "The company is trying to reduce operational consequences and serve its customers. The business noted that the financial effects of the inspections "are dependent on a variety of factors" and that it is "conducting additional engineering analysis and fleet management planning that will further inform those factors, including evaluating the timing and results of required inspections, work scope, and impact on our customers."
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