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Shareholder Alert: Robbins LLP Announces Another Complaint Filed Against Maxar Technologies Inc. (MAXR)


 

November 19, 2019 02:51 PM Eastern Standard Time

Shareholder rights law firm Robbins LLP reminds investors that a purchaser of Maxar Technologies Inc. (NYSE: MAXR) has filed a derivative complaint against the company's officers and directors for breaches of fiduciary duties, gross mismanagement, and alleged violations of the Securities Exchange Act of 1934. Maxar provides space technology solutions for commercial and government customers worldwide and manufactures geostationary communications satellites ("GeoComm") through its subsidiary.

Maxar Technologies Inc. (MAXR) Accused of Inflating the Value of its Intangible Assets

According to the complaint, in October 2017, MacDonald, Dettwiler and Associated Ltd. purchased DigitalGlobe and acquired DigitalGlobe's satellites, including the WorldView-4 satellite, and rebranded itself as Maxar. In March 2018, Maxar announced a contract to build a satellite called AMOS-8, touting the contract as a win. A few months later, on August 7, 2018, Spruce Point Capital Management issued a report questioning Maxar's financial statements and alleging that "Maxar's balance sheet [was] inflated with goodwill and overcapitalized intangible assets," estimating an impairment in intangible assets in the hundreds of millions of dollars. Then, in September 2018, Maxar revealed the loss of its AMOS-8 contract. In October 2018, the Company disclosed $345.9 million in impairment losses and $37.7 million impairment charges related to its GeoComm business. In addition to these disclosures, on January 7, 2019, Maxar announced its WorldView-4 "[would] no longer produce useable energy" because it had lost stability. Since news of Maxar's troubles became public, the Company's stock has plunged 73%, currently trading at around $12. Maxar was named in a securities class action lawsuit, which could further deplete the Company's assets.

 

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