We are investigating Mesa Air Group, Inc. (MESA) (“Mesa” or the “Company”) for potential violations of the federal securities laws.
On or around August 9, 2018, Mesa conducted its initial public offering (“IPO”), selling approximately 9.63 million shares of common stock priced at $12.00. On May 10, 2019, the Company’s Chief Executive Officer (“CEO”) Jonathan Ornstein disclosed that beginning well in advance of 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, the CEO disclosed that Mesa had found it “very difficult to meet the performance criteria” under its contract with American Airlines Inc. and had ultimately failed to do so. Since the IPO, Mesa’s stock price has traded as low as $2.32 per share, representing a decline of more than 80% from the Company’s offering price.