By Chuck Black
Westminster CO based Maxar Technologies has been hit by a class action lawsuit from disgruntled Maxar shareholders.
The claim accuses Maxar of using its $2.4Bln US ($3.2Bln CDN) acquisition of Westminster CO based DigitalGlobe in 2017 to inflate company assets and hide problems with at least one of the vendor’s satellites, the DigitalGlobe WorldView-4 Earth imaging satellite reported lost earlier this month.
As outlined in the January 14th, 2019 filing in the United States District Court for the District of Colorado (Case 1:19-cv-00124-SKC) under the title "Logan Durant, et al. v. Maxar Technologies Inc., et al," the lawsuit claimed that Maxar executives, including ex-CEO Howard Lance, VP and CFO Biggs Porter and executive VP Michael B. (Anil) Wirasekara Jr., provided:
Much of the case is expected to rest on the August 7th, 2018 Spruce Point Capital press release, "Spruce Point Capital Management Releases a Strong Sell Forensic Research Opinion on Maxar Technologies Ltd. (NYSE / TSX: MAXR)" which, along with accompanying research report, claimed that Maxar's "levered acquisitions" of Palo Alto, CA based Space Systems Loral in 2012 (when Maxar was known as the Richmond BC based MacDonald Dettwiler) and DigitalGlobe in 2017 were "poorly timed and executed with no free cash flow."
Westminster CO based Maxar Technologies has been hit by a class action lawsuit from disgruntled Maxar shareholders.
The claim accuses Maxar of using its $2.4Bln US ($3.2Bln CDN) acquisition of Westminster CO based DigitalGlobe in 2017 to inflate company assets and hide problems with at least one of the vendor’s satellites, the DigitalGlobe WorldView-4 Earth imaging satellite reported lost earlier this month.
As outlined in the January 14th, 2019 filing in the United States District Court for the District of Colorado (Case 1:19-cv-00124-SKC) under the title "Logan Durant, et al. v. Maxar Technologies Inc., et al," the lawsuit claimed that Maxar executives, including ex-CEO Howard Lance, VP and CFO Biggs Porter and executive VP Michael B. (Anil) Wirasekara Jr., provided:
...materially false and misleading statements regarding the Company’s business, operational and compliance policies (during the period from March 29th, 2018 through January 7th, 2019). Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
- Maxar improperly inflated the value of its intangible assets, among other accounting improprieties"
- Maxar’s highly-valued WorldView-4 was equipped with CMGs that were faulty and/or ill-suited for their designed and intended purpose; and
The suit was filed by the New York NY and Chicago IL law offices of Pomerantz LLP on behalf of investor Logan Durant, who owns 250 shares of Maxar stock and was "willing to serve as a representative party of the class of investors who purchased or acquired Maxar stock" during the period covered by the suit.
- as a result, Maxar’s public statements were materially false and misleading at all relevant times...
Much of the case is expected to rest on the August 7th, 2018 Spruce Point Capital press release, "Spruce Point Capital Management Releases a Strong Sell Forensic Research Opinion on Maxar Technologies Ltd. (NYSE / TSX: MAXR)" which, along with accompanying research report, claimed that Maxar's "levered acquisitions" of Palo Alto, CA based Space Systems Loral in 2012 (when Maxar was known as the Richmond BC based MacDonald Dettwiler) and DigitalGlobe in 2017 were "poorly timed and executed with no free cash flow."
The Spruce Point report also claimed substantial "earnings overstatement," which caused investors to overvalue the stock and buy, when they should have been selling.
As outlined in the January 1st, 2019 post, "2018: The Year in Space for Canada," the Maxar stock meltdown was one of the big space stories of 2018. As outlined in the January 7th, 2019 post, "Maxar Stock Drops to New Lows After DigitalGlobe Subsidiary Reports Loss of WorldView-4 Satellite," the public acknowledgement of the loss of the WorldView-4 satellite caused Maxar stock to drop further.
As outlined in the January 1st, 2019 post, "2018: The Year in Space for Canada," the Maxar stock meltdown was one of the big space stories of 2018. As outlined in the January 7th, 2019 post, "Maxar Stock Drops to New Lows After DigitalGlobe Subsidiary Reports Loss of WorldView-4 Satellite," the public acknowledgement of the loss of the WorldView-4 satellite caused Maxar stock to drop further.
Other law firms publicly exploring the possibility of either joining the existing action or perhaps beginning a separate one against Maxar include:
Don't expect any good news out of Maxar for the next little while.
___________________________________________________________
Chuck Black is the editor of the Commercial Space blog.
- Lake Hiawatha, NJ based Bronstein, Gewirtz & Grossman LLC, as outlined in the January 15th, 2019 Bronstein press release, "SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Notifies Investors of Class Action Against Maxar Technologies Inc. (MAXR) & Lead Plaintiff Deadline: March 15, 2019."
- Oklahoma City and Dallas TX based Federman & Sherwood, as per the January 15th, 2019 Federman press release, "Federman & Sherwood Announces Filing of Securities Class Action Lawsuit Against Maxar Technologies, Inc."
- The New York NY based Rosen Law Firm, as per the January 15th, 2019 Rosen press release, "EQUITY ALERT: Rosen Law Firm Announces Filing of Securities Class Action Lawsuit Against Maxar Technologies Inc. – MAXR."
- New York NY based Bragar Eagel & Squire PC, as per the January 16th, 2019 Bragar press release, "Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Maxar Technologies Ltd. (MAXR) and Encourages MAXR Investors to Contact the Firm."
- Seattle WA based Hagens Berman Sobol Shapiro LLP as per the January 16th, 2019 Hagens Berman press release, "Hagens Berman Notifies Investors in Maxar Technologies (NYSE: MAXR) of March 15, 2019 Lead Plaintiff Deadline and CEO Departure."
- Los Angeles CA based Glancy Prongay & Murray LLP as per the January 16th, 2018 Glancy press release, "Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of Maxar Technologies Ltd. Investors (MAXR)."
- New York NY based Kirby McInerney LLP, as per the January 16th, 2019 Kirby press release, "INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action Lawsuit Against Maxar Technologies Inc."
- Los Angeles CA based Schall Law Firm, as per the January 16th, 2019 Schall press release, "IMPORTANT INVESTOR ALERT: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against Maxar Technologies Ltd. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm."
Don't expect any good news out of Maxar for the next little while.
 |
| Chuck Black. |
Chuck Black is the editor of the Commercial Space blog.
No comments:
Post a Comment