March 24, 2017 (Shareholders Foundation) - An investigation on behalf of investors of TransDigm Group Incorporated (NYSE:TDG) shares over potential securities laws violations by TransDigm Group Incorporated and certain of its directors and officers in connection certain financial statements was announced.



The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of TransDigm Group Incorporated (NYSE:TDG) concerning whether a series of statements by TransDigm Group Incorporated regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Cleveland, OH based TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service.

TransDigm Group Incorporated reported that its Total Revenue rose from over $2.7 billion for the 52 weeks period that ended on Sept. 30, 2015 to over 43.17 billion for the 52 weeks period that ended on September 30, 2016 and that its Net Income for those respective time periods increased from $447.21 million to $5896.41 million .

Shares of TransDigm Group Incorporated (NYSE:TDG) rose to as high as $289.12 per share on September 30, 2016.

On January 20, 2017, an article was published claiming that TransDigm Group Incorporated is the Valeant of the aerospace industry. Specifically, the article was alleged that TransDigm Group Incorporateds business model relies on acquiring airplane parts companies, firing employees, and egregiously raising prices. The report claimed that while the Companys business model made it a dominant airplane parts supplier, it also burdened the Companys balance sheet with a sky-high debt load.

Then, on March 21, 2017, California Representative Ro Khanna sent a letter to the Defense Department Inspector General asking for an investigation into the business practices of TransDigm Group Incorporated, claiming that the Company appears to be evading certain pricing and cost disclosure regulations.

Shares of TransDigm Group Incorporated (NYSE:TDG) declined to as low as $203.72 per share on March 24, 2017.