On February 19, 2013, Lockheed Martin Corp. agreed to pay $19.5 million to settle a securities fraud class-action lawsuit. In July 2011, the City of Pontiac General Employees’ Retirement System, the public employees’ pension fund for Pontiac, Michigan, accused Lockheed for misleading investors about its information technology division.
Lockheed was blamed for misstatements that led to the decline in its stock price. They allegedly overstated the financial projections for its information systems and global services division. The settlement still requires the judge’s approval.
The case is City of Pontiac General Employees’ Retirement System v. Lockheed Martin Corporation, et al., U.S. District Court, Southern District of New York, 11-05026.