Mesa Air Group, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Arizona on behalf of those who acquired Mesa Air Group, Inc. (“Mesa Air Group” or the “Company”) (NASDAQ: MESA) securities pursuant and/or traceable to the Company’s August 2018 Initial Public Offering (“IPO”). Investors have until June 1, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Mesa Air Group’s operational performance was poor and below industry standards; (ii) Mesa Air Group had a shortage of qualified mechanics and maintenance personnel; (iii) Mesa Air Group had an inadequate number of spare aircraft and parts; (iv) Mesa Air Group did not have a strong track record of reliable performance; (v) then-existing “risks” had already materialized; and (vi) Mesa Air Group knew of undisclosed adverse trends and uncertainties at the time of the IPO.
Mesa Air Group conducted its IPO on August 9, 2018, selling about 11 million shares of common stock at $12.00 per share. The Company’s CEO admitted on May 10, 2019, that beginning well in advance of the IPO, the Company had been “hamstrung by the fact that we had expanded a lot . . . maintenance became more difficult in terms of qualified maintenance people.” On August 9, 2019, the CEO disclosed that the Company “did not meet the performance criteria” under its American Airlines Inc. contract, and found it “very difficult to meet the performance criteria.” Based on this news, shares of Mesa Air Group have consistently traded well below its IPO share price.
If you acquired Mesa Air Group securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.