Kessler Topaz Meltzer & Check, LLP: Securities Fraud Class Action Filed Against Maxar Technologies Inc. - MAXR

RADNOR, Pa., Jan. 24, 2019 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP alerts investors that a securities fraud class action lawsuit has been filed against Maxar Technologies Inc. (NYSE:  MAXR) ("Maxar") on behalf of purchasers of Maxar securities between March 29, 2018 and January 7, 2019, inclusive (the "Class Period").

Investors who purchased Maxar securities during the Class Period may, no later than March 15, 2019, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please visit www.ktmc.com/maxar-securities-class-action.

According to the complaint, Maxar is a leading global provider of advanced space technology solutions for commercial and government markets. On October 5, 2017, Maxar purchased DigitalGlobe, Inc. ("DigitalGlobe"), a commercial vendor of space imagery and geospatial content, for $2.4 billion dollars. As part of the purchase, Maxar acquired DigitalGlobe's satellites, including the WorldView-4 satellite ("WorldView-4"). WorldView-4 is equipped with control moment gyros ("CMGs"), which are attitude control devices generally used in spacecraft attitude control systems.

The Class Period commences on March 29, 2018, when Maxar filed a Form 40-F with the SEC announcing Maxar's financial and operating results for the year ended December 31, 2017.  Appended to that report was Management's discussion and analysis ("MD&A"), dated February 22, 2018, which stated that Maxar acquired "intangible assets, consisting of customer relationships, backlog, technology, software, and other intellectual property" in its acquisition of DigitalGlobe and that Maxar incurred $1.439 billion in intangible assets related to that acquisition and an additional $1.668 billion in goodwill.

According to the complaint, on August 7, 2018, Spruce Point Capital Management ("Spruce Point") published a report on Maxar which alleged, in part, that Maxar "has pulled one of the most aggressive accounting schemes Spruce Point has ever seen to inflate Non-IFRS earnings by 79%." Specifically, the report asserted that Maxar used its acquisition of DigitalGlobe "to inflate [its] intangible assets" and had "amended its post-retirement benefit plan to book one-time gains" in a manner that "was not fully disclosed across its investor communications." The price of Maxar common stock fell $5.97 per share, or 13.44%, to close at $38.44 on August 7, 2018.

Then, on January 7, 2019, Maxar disclosed that WorldView-4 experienced a failure in its CMGs, preventing it from collecting imagery and that the satellite will likely not be recoverable and no longer produce usable imagery. Following this news, Maxar's stock price fell $5.69 per share, or 48.5%, over the subsequent two trading days, to close at $6.03 per share on January 8, 2019.

The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Maxar improperly inflated the value of its intangible assets, among other accounting improprieties; (ii) WorldView-4 was equipped with CMGs that were faulty and/or ill-suited for their intended purpose; and (iii) as a result, Maxar's public statements were materially false and misleading.

Maxar investors who wish to discuss this securities fraud class action lawsuit and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299-7706 or at [email protected].

Maxar investors may, no later than March 15, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.

Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.

CONTACT:

Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299-7706
(610) 667-7706
[email protected]

SOURCE Kessler Topaz Meltzer & Check, LLP

Related Links

http://www.ktmc.com