The complaint filed by Glancy Prongay Wolke & Rotter LLP alleges that Aevex executives and underwriters concealed a pre-arranged plan to bypass a 180-day lock-up period. According to the suit, this allowed Madison to divest a significant portion of its holdings through an SPO shortly after the initial public offering. The filing contends that the entirety of the SPO’s net proceeds went to Madison, leaving Aevex with no financial gain from the transaction.

Because of these undisclosed arrangements, the plaintiffs argue that the company’s public statements concerning its business prospects lacked a reasonable basis. Shareholders who purchased stock during the specified class period may now participate in the litigation or choose to remain absent class members. No class has been certified at this time, and investors retain the right to select their own counsel for the proceedings.