Maxar Technologies Securities Class Action Lawsuit Investigation
Kehoe Law Firm, P.C. is investigating legal claims on behalf of investors of Maxar Technologies, Ltd. (NYSE: MAXR) regarding possible violations of securities laws.
If you invested in Maxar Technologies, you may have a legal claim. Investors of Maxar Technologies can contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected] or complete the form on the right to learn more about the securities investigation.
MAXR Stock Price Drops More Than 13% On The News of Inflated Assets
On August 7, 2018, Spruce Point Capital Management published a research report alleging that Maxar “has pulled one of the most aggressive accounting schemes Spruce Point has ever seen to inflate Non-IFRS earnings by 79%.”
Specifically, the report asserts that Maxar 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”.
Following publication of the Spruce Point report, Maxar’s stock price fell more than 13% to close at $38.44 on August 7, 2018, thereby injuring investors.
SeekingAlpha Reports: “Maxar -6.8% as short seller Spruce Point puts on Strong Sell”
On August 7, 2018, SeekingAlpha reported the following:
Maxar Technologies . . . is 6.8% lower this morning after SA contributor Spruce Point Capital Management takes a short position, citing “100% downside risk” once investors see that earnings are overstated by about 80%.
But it sees 45-55% intermediate downside in a target of $20-$25/share. The stock’s currently at $41.39.
The company’s acquisitions of Space Systems Loral and Digital Globe are starting to fail, Spruce Point notes, with the SSL deal poorly timed and facing cash flow issues.
What’s more, Maxar is run by Howard Lance, a CEO that Spruce Point says has overseen two accounting debacles. At NCR, Lance “appears to have embellished his role as COO of the entire company, whereas his role was limited to the Retail and Financial Groups. Furthermore, Lance has obscured from his biography his leadership roles at two companies requiring financial restatement after admitting material financial control weaknesses.”
MAXR Investors and Shareholders
If you purchased, or otherwise acquired, securities of Maxar Technologies, contact Kehoe Law Firm to learn more about your potential legal rights.
Kehoe Law Firm, P.C.
