Mesa Air Group, Inc. (NASDAQ : MESA), an American airline company headquartered in Phoenix and a holding company for Mesa Airlines is reportedly under investigation over its third quarter 2019 financial results.
Following is the press release from Rosen Law Firm on this matter.
On August 9, 2018, Mesa conducted its initial public offering (“IPO”), selling approximately 11 million shares of common stock for $12.00 per share. Then on May 10, 2019, Mesa’s Chief Executive Officer stated 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. and that it would be “very difficult to meet the performance criteria.”
The Company’s shares have consistently traded below the IPO price, closing as low as $2.70 per share on March 19, 2020.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Mesa investors. If you purchased shares of Mesa please visit the firm’s website at http://www.rosenlegal.com/cases-register-1825.html to join the class action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at firstname.lastname@example.org or email@example.com.
Below is the press release from the Law Offices of Howard G. Smith regarding this matter.
Law Offices of Howard G. Smith announces an investigation on behalf Mesa Air Group, Inc. (“Mesa” or the Company”) (NASDAQ: MESA) investors concerning the Company and its officers’ possible violations of federal securities laws.
On August 8, 2019, Mesa issued a press release to announce its third quarter 2019 financial results. Therein, Mesa reported adjusted net income of $10.4 million and total operating revenues of $180 million. The Company also reported increased maintenance expenses of $54 million.
On this news, Mesa’s share price fell $3.15, or over 32%, to close at $6.62 per share on August 9, 2019, thereby injuring investors.
In other news: Mesa Airlines employees started getting furlough notices.
It looks like this is going to be one rough year for Mesa Airlines.