BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased Maxar Technologies Ltd. (“Maxar” or the “Company”) (NYSE: MAXR) securities between March 29, 2018 and January 7, 2019, inclusive (the “Class Period”). Maxar investors have until March 15, 2019 to file a lead plaintiff motion.
On August 7, 2018, Spruce Point Capital published a report claiming that Maxar “has pulled one of the most aggressive accounting schemes Spruce Point has ever seen to inflate Non-IFRS earnings by 79%,” and that the Company’s “$3.7 billion of rising debt with almost no cash and free cash flow” necessitates that Maxar “eliminate its dividend immediately, or risk wiping out equity holders.” On this news, Maxar’s share price fell more than 13% on August 7, 2018, thereby injuring investors.
Then, on January 7, 2019, Maxar disclosed that WorldView-4 had experienced a failure in its CMGs, preventing the satellite from collecting imagery due to the loss of an axis of stability. On this news, the Company's stock price fell $5.69 per share, or 48.5%, over the following two trading sessions, to close at $6.03 on January 8, 2019.
The complaint filed in this class action alleges that the defendants 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 purchased shares of Maxar, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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