Maxar Technologies Ltd (MAXR), a publicly-traded space technology company, is the subject of a class action lawsuit filed on behalf of investors who lost money investing in the company. If you lost money in Maxar Technologies or DigitalGlobe, we would like to talk to you.
MDA DigitalGlobe Merger
Maxar Technologies was created in October, 2017 with the merging of DigitalGlobe and MDA Holdings.
At issue in the lawsuit are MDA’s handling of the merger with DigitalGlobe and the DigitalGlobe shareholders who received Maxar stock as a result of the acquisition, and alleged false and misleading statements from officers and directors of the companies.
Maxar first listed its common stock on the NYSE in October 2017 and issued 21 million shares of its stock to former shareholders of DigitalGlobe in connection with the merger. The new shares of Maxar were issued pursuant to an F-4 Registration Statement filed with the Securities and Exchange Commission, and then traded publicly on the NYSE.
The lawsuit, which seeks to recover damages for investors under federal securities laws, alleges that the Registration Statement “touted false and misleading financial results, trends, and metrics and omitted material facts rendering those financial results, trends and metrics materially misleading.”
Maxar Stock Drops On Accusation Of Accounting Scheme
On August 7, 2018, Spruce Point Capital management released a report revealing that Maxar had perpetrated a “brazen intangible asset inflation scheme to overstate EBITDA and EPS by approximately 17% and 79%.”
The next day, Maxar’s stock price closed down 17%, causing injury to investors.
Then, on October 31, 2018, Maxar’s third quarter financial results showed a $432 million net loss, rather than a profit, as market analysts were led to expect. That day, the stock closed down an incredible 45% from the previous day.
It is alleged that representations in the Registration Statement were false and misleading, in part because the “risks” that purportedly “could” or “may” occur were in fact already occurring at the time of the merger.
Recovering Money Lost With Maxar (MAXR) Stock
If you suffered losses with Maxar, you may be able to recover some of your losses by participating in the lawsuit.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800) 975-4345.