Published
October 11, 2026
People who bought CAE Inc. common shares between August 10, 2022 and May 21, 2024, and still held some of them at any time between February 14 and May 22, 2024, may qualify to claim a pro rata share of the $38.25 million CAD CAE securities class action settlement. Claims are open through March 22, 2027, and the Superior Court of Québec’s approval hearing is set for December 22, 2026.
Current Status
Claims are open. The deadline to submit a claim, online or by mail, is March 22, 2027, and every claim needs identification and brokerage records. The Superior Court of Québec authorized the class action for settlement purposes on August 26, 2026 and will hold a hearing on December 22, 2026 to decide whether to approve the settlement. The settlement has not been approved, and the administrator will not review claims or make payments unless it is.Free settlement alerts
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Status
Claims Open
Approval hearing December 22, 2026
Claim Deadline
March 22, 2027
Online or by mail · opt out or object by December 1, 2026
Settlement Fund
$38.25 million CAD
Pro rata by compensable loss · payments under $15 not made
Proof Required
Yes
Government photo ID plus brokerage statements or trade confirmations for CAE shares
What Changed Recently?
CAE Inc., the Montréal-based maker of flight simulators and pilot training, agreed on July 31, 2026 to settle a shareholder class action for $38.25 million CAD. The case is Mouvement d’éducation et de défense des actionnaires v. CAE inc. et al., No. 500-06-001312-244, in the Superior Court of Québec. On August 26, 2026 the court authorized the class action and granted leave to bring a secondary-market claim under the Québec Securities Act, both for settlement purposes only, and the notice to shareholders went out on October 2, 2026, which opened the claim period.The lawsuit, filed in June 2024 against CAE and its former chief executive and chief financial officer, alleges that public documents and statements contained misrepresentations and failed to disclose material changes, including about eight fixed-price contracts in CAE’s defence and security business that the plaintiff says weighed disproportionately on that segment’s profitability. It alleges that shares bought after August 10, 2022 traded at an inflated price until corrective information came out on May 21, 2024. The defendants deny all of the allegations and any liability, and no court has found them liable.
Who Qualifies?
The class is everyone who bought one or more CAE common shares between August 10, 2022 and May 21, 2024, inclusive, and still held some or all of those shares at any time between February 14, 2024 and May 22, 2024, inclusive. Both conditions apply: a purchase inside the class period, and shares still held during the February-to-May 2024 window.The settlement agreement defines the eligible shares as CAE common shares listed on the Toronto Stock Exchange and the New York Stock Exchange, and the class definition sets no residency requirement. The defendants, CAE’s past and current executive officers and directors and those of its subsidiaries, the individual defendants’ immediate families, and entities any of them control are excluded. Anyone who has their own lawsuit against the defendants over the same facts and does not discontinue it by December 1, 2026 is treated as having opted out.
How Much Can You Get?
There is no fixed amount per share. After the court-approved class counsel fees and administration expenses are paid, the rest of the $38.25 million CAD is divided among approved claimants in proportion to each claimant’s compensable loss. Class counsel, Scott+Scott CA ULC and Belleau Lapointe LLP, will ask the court for fees of up to 25% of the fund, plus disbursements and applicable taxes, all paid out of the settlement amount.Each compensable loss is calculated under the guidelines in the Québec Securities Act. The calculation looks at how many CAE shares the claimant held on August 9, 2022, the shares bought during the class period, and whether they were sold during the class period, sold in the ten trading days after it, or still held, along with the prices paid and received. The full method is in sections 5 to 13 of the plan of allocation. Some claimants will have a compensable loss of zero, and a calculated payment under $15 is not paid out but redistributed to the other claimants.
Payments are made in Canadian dollars by cheque or Interac e-Transfer; corporate claimants receive cheques. Cheques go stale six months after they are issued, and e-Transfers stay valid for 30 days. CAE pays up to $5 million CAD of the settlement through its insurance deductible, which is reduced by its defence costs, and its insurers pay the rest. None of the money returns to the defendants: if a second distribution to claimants is not practical, leftover funds go to Québec’s Fonds d’aide aux actions collectives and to a court-approved recipient expected to benefit class members.
What Proof or Notice ID Is Required?
Documentation is required for every claim; no notice ID is involved. The notice lists three kinds of records:- Identity: a copy of a currently valid government-issued photo ID, front and back, such as a driver’s licence, health insurance card or passport.
- Authority, when filing for someone else: a document showing the filer’s authority to act for the class member, such as a corporate authorization or a representative authorization from the plan of allocation.
- Share records: a monthly statement showing the CAE common shares owned at market close on August 9, 2022, plus either all trade confirmation slips or all monthly statements covering transactions in CAE common shares from August 10, 2022 through June 5, 2024.
What Is the Deadline?
- December 1, 2026: deadline to opt out, or to object to the settlement, the plan of allocation or the fee request. An opt-out form must be accompanied by trade confirmations or monthly statements for CAE transactions during the class period.
- December 22, 2026: approval hearing in room 15.02 of the Montréal courthouse. The long-form notice gives the time as 9:15 a.m. ET, while the settlement website’s home page says 9:30 a.m.; the notice says the hearing may also be held by videoconference.
- March 22, 2027: deadline to submit a claim, with all supporting documents, online or by mail.
How Do You Take Action?
Claims are filed through the CAE settlement claim portal, run by the court-appointed administrator, Verita Global. The official settlement website posts the notice, the settlement agreement, the plan of allocation and the opt-out form, and a French-language site carries the same information. The notice says a paper claim form can be requested from the administrator for people who cannot file online; the same documents are required either way. Claims can be submitted now, before the court rules on the settlement.What Happens Next?
At the December 22, 2026 hearing the court will decide whether the settlement is fair, reasonable and in the best interests of class members, and whether to approve the plan of allocation, the administration expenses and class counsel’s fees. If the settlement is approved, claims are reviewed after the March 22, 2027 deadline, and payments go out once the review and any appeals are complete. The notice says distribution will likely take place several months after approval and that the whole process can take about a year or longer. If the settlement is not approved, claimants will be notified and the case will continue.Sources and Verification
• Official settlement website, CAE Inc. Securities Class Action Settlement: CAE Securities Settlement.com• Settlement documents, including the long-form notice, settlement agreement and plan of allocation: Important Documents
• Settlement FAQ: Frequently Asked Questions
• Settlement Agreement dated July 31, 2026, Superior Court of Québec No. 500-06-001312-244
• Court records: Québec Class Action Registry (court file 500-06-001312-244)
Questions
Do CAE shares bought on the New York Stock Exchange count?
The settlement agreement defines the eligible shares as CAE common shares listed on the Toronto Stock Exchange and the New York Stock Exchange, and the class definition contains no residency requirement. Shares bought on either exchange during the class period count, provided some were still held at any time between February 14 and May 22, 2024.
Why might a CAE shareholder receive nothing from the settlement?
The notice lists three reasons: the claimant’s calculated compensable loss is zero, the calculated payment comes to less than $15 (that money is redistributed to other claimants), or the claim is found to be fraudulent. Whether a loss exists depends on the CAE shares held on August 9, 2022 and the prices of every purchase and sale during and shortly after the class period.
Can a rejected CAE claim be appealed?
A disallowed claim that was complete and filed before March 22, 2027 can be appealed to a court-appointed arbitrator within 15 days of the administrator’s decision notice, following the procedure in sections 43 to 46 of the plan of allocation. An admissible appeal carries a $100 fee, which is refunded if the appeal succeeds. The arbitrator’s decision is final.
Did CAE admit wrongdoing?
No. CAE and its former chief executive and chief financial officer deny all of the allegations and any liability, and no court has found them liable. The parties agreed to settle to avoid the delays and risks of continued litigation and a trial.
Official Settlement Notice
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Settlement Amount
$38.25 million CAD
Case Title
Mouvement d’éducation et de défense des actionnaires v. CAE inc. et al.
Case Number
500-06-001312-244
Court
Superior Court of Québec (Class Action Division), District of Montréal
Final Approval Hearing
December 22, 2026
Room 15.02, Montréal courthouse · 9:15 a.m. ET per the notice
Administrator
Verita Global
Official Website
CAE Securities Settlement
