SAN DIEGO & PHOENIX--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that it is investigating Mesa Air Group, Inc. (NASDAQ: MESA) for alleged violations of the Securities Act of 1933 and whether the Company's officers and directors breached their fiduciary duties to shareholders. Mesa operates as the holding company for Mesa Airlines, Inc., which provides regional air carrier services with American Airlines and the United Airlines.
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Mesa Air Group, Inc. (MESA) Fails to Meet Performance Criteria for American Airlines CPA
Mesa held its IPO on August 14, 2018, offering approximately 11 million shares at $12.00 per share for gross proceeds of approximately $115.56 million. In its Registration Statement, Mesa touted its "competitive cost structure" and "track record of reliable performance." However, on August 9, 2019, Mesa revealed it "did not meet the performance criteria" required under its American Airlines capacity purchase agreement ("CPA"). Consequently, American elected to remove four of Mesa's aircrafts from the CPA, thereby decreasing the number of guaranteed revenue-generating aircrafts operated by Mesa for American. Since this news, Mesa's share price has plummeted, currently trading at around $4 per share, representing a staggering 67% decline from its IPO price.
Mesa Air Group, Inc. (MESA) Shareholders Have Legal Options
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