NEW YORK, Jan. 22, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Maxar Technologies Inc. (“Maxar” or the “Company”) (NYSE: MAXR ) of the March 15, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Maxar stock or options between March 29, 2018 and January 7, 2019 and would like to discuss your legal rights, click here : www.faruqilaw.com/MAXR . There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT: FARUQI & FARUQI, LLP 685 Third Avenue, 26 th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. rgonnello@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of Colorado on behalf of all those who purchased Maxar securities between March 29, 2018 and January 7, 2019 (the “Class Period”). The case, Durant v. Maxar Technologies Inc. et al, No. 19-cv-00124 was filed on January 14, 2019 and has been assigned to Judge S. Kato Crews.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Maxar improperly inflated the value of its intangible assets, among other accounting improprieties; (2) Maxar’s highly-valued WorldView-4 was equipped with control moment gyros (“CMGs”) that were faulty and/or ill-suited for their designed and intended purpose; and (3) as a result, Maxar’s public statements were materially false and misleading at all relevant times.
Specifically, on August 7, 2018, Spruce Point Capital Management published a research report regarding Maxar. The Spruce Point report alleged, in part, that Maxar orchestrated an aggressive accounting scheme and asserted that Maxar had used its acquisition of DigitalGlobe “to inflate [its] intangible assets” and had “amended its post-retirement benefit plan to book one-time gains” in a manner that “was not fully disclosed across its investor communications.”
On this news, the Company's stock price fell from $44.41 per share on August 6, 2018 to $38.44 per share on August 7, 2018—a $5.97 or 13.44% drop.
Then, on January 7, 2019, Maxar disclosed that its WorldView-4 satellite experienced a failure in its CMGs, preventing the satellite from collecting imagery due to the loss of an axis of stability. It was further disclosed that WorldView-4 would likely not be recoverable and would no longer produce usable imagery.
On this news, the Company's stock price fell, over two trading sessions, from $11.72 per share on January 4, 2019 to $6.03 per share on January 8, 2019—a $5.69 or 48.55% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Maxar’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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