Lockheed CEO Accused of Insider Trading in Investor Lawsuit (1)

Lockheed Martin Corp. management overstated abilities to deliver on commitments while its CEO collected $12.8 million through stock sales before a large price drop, a shareholder lawsuit said.

CEO Jim Taiclet sold 29,351 shares of Lockheed stock in February on insider information about the defense contractor’s shortcomings for estimating costs and other contract fulfillment issues, a stockholder told the US District Court for the District of Maryland.

Former Chief Financial Officer Jay Malave sold 8,935 shares around the same time for about $3.9 million, the shareholder derivative action filed Thursday said.

Lockheed’s stock price plummeted almost 11% to close at $410.74 on July 22, the day it reported pre-tax losses of $1.6 billion in the second quarter of 2025. It was the stock’s steepest single-day slide since October 2021, according to data compiled by Bloomberg.

Among the charges were $950 million in an Aeronautics classified program and $570 million and $95 million for its helicopter development efforts with Canada and Turkey, respectively. Lockheed also noted $169 million in other charges and lowered its full-year earnings forecast.

Current and former executives and board members also hurt Lockheed’s reputation and finances by failing to alert shareholders about a lack of internal controls and procedures to review program requirements, the complaint said.

Meanwhile, leadership made Lockheed overpay for repurchases of its own artificially inflated stock by approximately $746.5 million, said shareholder Jereth Camacho. And they allegedly gave shareholders misleading proxy statements in 2024 and 2025 that sought votes on re-electing directors.

The derivative complaint echoes a proposed class action filed against Lockheed, Taiclet, Malave, and CFO Evan Scott.

The July results were among a number of times over the past year Lockheed reported losses tied to classified programs. Lockheed said while delivering third quarter of 2024 financial results last October that it had to recognize $80 million in losses on a classified program in the aeronautics segment as a result of unanticipated costs. In January, Lockheed said it recorded pre-tax losses of $1.7 billion and $2.0 billion tied to classified programs in the 2024 fourth quarter and full year.

The July financial results came after the April appointment of Scott, who initiated a sweeping review of Lockheed’s performance across certain programs.

Camacho accused the brass of wrongdoing from Jan. 23, 2024—when it reported 2023 financial results—through July 22, 2025. Camacho alleged breaches of their fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and securities law violations.

“In general, it is our company practice not to comment on legal matters,” a Lockheed spokesperson said in an email.

The Brown Law Firm PC represents Camacho, who seeks damages, restitution, and corporate governance reform for Lockheed.

Paul, Weiss, Rifkind, Wharton & Garrison LLP represents Lockheed in the proposed class action.

The case is Camacho v. Taiclet, D. Md., No. 1:25-cv-03013, complaint filed 9/11/25.