A lawsuit filed on behalf of investors who purchased L-3 Communications stock between April 25, 2013 and July 30, 2014 alleged the company violated federal securities laws with regard to its work on the U.S. Army’s C-12 aircraft program. The plaintiffs alleged that L-3 made false and/or misleading statements about and/or failed to disclose certain problems on its contract to service the C-12. The value of L-3’s stock dropped more than 12 percent on July 31, 2014 after the company announced it would restate financial results due to “misconduct and accounting errors” on the contract, including cost overruns and net sales overstatements. In February 2017, L-3 settled the lawsuit for $34.5 million without admitting any fault or liability.