SAN DIEGO & WESTMINSTER, Colo.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP reminds investors that purchasers of Maxar Technologies Inc. (NYSE: MAXR) have filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between February 22, 2018 and January 7, 2019. Maxar (formerly MacDonald, Dettwiler and Associates Ltd. ("MacDonald")) provides space technology solutions for commercial and government customers worldwide.
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Maxar Technologies Inc. (MAXR) Accused of Inflating the Value of its Intangible Assets
According to the complaint, in October 2017, MacDonald purchased DigitalGlobe and acquired DigitalGlobe's satellites, including the WorldView-4 satellite, and rebranded itself as Maxar. Unbeknownst to investors, the WorldView-4 – which had a net book value of approximately $155 million – was equipped with faulty devices that would ultimately render the satellite unusable. On August 7, 2018, Spruce Point Capital Management reported that Maxar acquired DigitalGlobe to inflate its intangible assets and engaged in an aggressive accounting scheme to inflate Non-IFRS earnings by 79%. On January 7, 2019, Maxar revealed that WorldView-4 experienced a failure and that the satellite would not be recoverable and would no longer produce usable imagery. Since news of Maxar's troubles became public, the company's stock has plunged 81% and currently trades at around $8.
Maxar Technologies Inc. (MAXR) Shareholders Have Legal Options
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