RM LAW Announces Class Action Lawsuit Against Maxar Technologies Inc.

BERWYN, Pa., Jan. 23, 2019 /PRNewswire/ -- RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Maxar Technologies Inc. (NYSE: MAXR) ("Maxar" or the "Company") on behalf of purchasers of Maxar securities between March 29, 2018 and January 7, 2019, inclusive (the "Class Period").

Maxar shareholders may, no later than March 15, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Maxar and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.

This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.

Maxar is a leading global provider of advanced space technology solutions for commercial and government markets including satellites, Earth imagery, geospatial data and analytics.  On October 5, 2017, Maxar (doing business under the name MacDonald, Dettwiler and Associates Ltd. at the time) purchased DigitalGlobe, Inc. ("DigitalGlobe"), an American commercial vendor of space imagery and geospatial content, for $2.4 billion dollars.  As part of the purchase, Maxar acquired DigitalGlobe's satellites, called the "WorldView Legion," 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 an annual report on a Form 40-F with the SEC, announcing Maxar's financial and operating results for the year ended December 31, 2017. Appended to the annual report was Management's discussion and analysis ("MD&A"), dated February 22, 2018.  The MD&A stated that Maxar acquired "intangible assets, consisting of customer relationships, backlog, technology, software, and other intellectual property" in its 2017 acquisition of DigitalGlobe. More specifically, the MD&A stated that Maxar incurred $1.439 billion in intangible assets related to the acquisition of DigitalGlobe, and an additional $1.668 billion in goodwill.

According to the complaint, on August 7, 2018, Spruce Point Capital Management ("Spruce Point") published a research report on Maxar. The report 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."  Following this news, 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 due to the loss of an axis of stability. It was further disclosed that the WorldView-4 satellite will likely not be recoverable and will 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, the 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) Maxar's highly-valued WorldView-4 was equipped with CMGs that were faulty and/or ill-suited for their designed and intended purpose; and (iii) as a result, Maxar's public statements were materially false and misleading at all relevant times.

If you are a member of the class, you may, no later than March 15, 2019, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.

For more information regarding this, please contact RM LAW, P.C.  (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at [email protected] or click here. For more information about class action cases in general or to learn more about RM LAW, P.C. please visit our website by clicking here. 

RM LAW, P.C. is a national shareholder litigation firm.  RM LAW, P.C. is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.

SOURCE RM LAW, P.C.

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