LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Mesa Air Group, Inc. ("Mesa" or the Company") (NASDAQ: MESA) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s August 2018 initial public offering (the “IPO” or “Offering”). Mesa investors have until June 1, 2020 to file a lead plaintiff motion.
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On August 9, 2018, Mesa conducted its initial public offering (“IPO”) in which it sold approximately 11 million shares of common stock for $12.00 per share.
On May 10, 2019, Mesa’s Chief Executive Officer ("CEO") revealed that over the last 18 months, well before the IPO, Mesa had been “hamstrung by the fact that we had expanded a lot... maintenance became more difficult in terms of qualified maintenance people.”
Then on August 9, 2019, Mesa’s CEO stated that Mesa “did not meet the performance criteria” under its contract with American Airlines, Inc.
The Company’s shares have consistently traded below the IPO price, closing as low as $2.70 per share on March 19, 2020.
The complaint alleges that defendants made false and/or misleading statements and/or failed to disclose: (1) that Mesa’s operational performance was poor and below industry standards; (2) that Mesa had a shortage of qualified mechanics and maintenance personnel; (3) that Mesa had an inadequate number of spare aircraft and parts; (4) that Mesa did not have a strong track record of reliable performance; (5) that then-existing “risks” had already materialized; (6) that Mesa knew of undisclosed adverse trends and uncertainties at the time of the IPO; and (7) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
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If you purchased Mesa securities during the Class Period, you may move the Court no later than June 1, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Mesa securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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