Lawsuit Filed Against Lockheed Martin Alleging Billions in Reported Financial Losses
Lockheed Martin and its top executives are under scrutiny following a securities class action lawsuit alleging false and misleading financial disclosures. The lawsuit, filed in the Southern District of New York, accuses the company of concealing significant financial losses and overstating its ability to meet contractual commitments.
The core allegations include a lack of effective internal controls, inadequate reviews of program requirements, and the concealment of risks in government contracts. These issues are said to have led to significant financial losses, particularly in Lockheed Martin's Aeronautics and Rotary and Mission Systems business segments.
The lawsuit, which targets alleged securities fraud through misinformation that impacted investor decisions and stock prices, was filed by law firms including Levi & Korsinsky, Hagens Berman, and others. The complaint seeks to represent investors who bought Lockheed Martin securities during the class period.
The company has faced billions in losses, including a $950 million charge on a classified program involving Lockheed's Skunk Works division and a $1.8 billion loss during the second quarter of 2025. Lockheed Martin's stock fell near 11% after the disclosures during the second-quarter earnings call in July 2022 and more than 9% on the losses disclosed in January 2025.
Lockheed Martin also noted about $570 million in losses on its Canadian maritime helicopter program. The company's CEO, Jim Taiclet, stated that issues with the F-35's Technology Refresh 3 upgrade paused deliveries for a year.
In addition, Lockheed Martin faces a $4.6 billion additional income tax liability from the IRS related to an accounting method change. The company is accruing $100 million in interest as it contests the income tax claim.
Despite these challenges, Lockheed Martin Aeronautics has delivered 207 aircraft since 2024. More orders for F-35 aircraft are expected from the United Kingdom, Belgium, Denmark, and boosted U.S. government orders.
This news is independently reported by Eric E. Garcia, a senior business reporter at the Fort Worth Report. Read more about the editorial independence policy of Fort Worth Report here.
[1] Fort Worth Report, "Lockheed Martin's stock falls after disclosing billions in losses," July 2022, https://fortworthreport.org/2022/07/20/lockheed-martins-stock-falls-after-disclosing-billions-in-losses/
[2] Fort Worth Report, "Lockheed Martin faces securities class action lawsuit," July 2025, https://fortworthreport.org/2025/07/28/lockheed-martin-faces-securities-class-action-lawsuit/
[3] Fort Worth Report, "Lockheed Martin records pre-tax losses of $1.7 billion," January 2025, https://fortworthreport.org/2025/01/28/lockheed-martin-records-pre-tax-losses-of-1-7-billion/
The securities class action lawsuit against Lockheed Martin has revealed financial discrepancies and misinformation in the company's disclosures, which have significantly impacted investor decisions and stock prices in the finance and business industry. The lawsuit accuses Lockheed Martin of hiding significant financial losses and contractual commitments, as well as a lack of effective internal controls and inadequate program reviews, especially in the technology and government industry sectors. The controversy surrounding Lockheed Martin's financial status is extensively reported by Eric E. Garcia, a senior business reporter at the Fort Worth Report, offering in-depth coverage on the company's ongoing challenges.
