jgrabar
4 years ago
@thehumanchessmachine
On September 11, 2020, Judge William J. Martínez of the United States District Court for the District of Colorado issued an order granting in part and denying in part the defendantsโ motion to dismiss in the pending securities class action, paving the way for litigation to proceed. According to the complaint, in October 2017, MacDonald, Dettwiler and Associated Ltd. purchased DigitalGlobe and acquired DigitalGlobeโs satellites, including the WorldView-4 satellite, and rebranded itself as Maxar. In March 2018, Maxar announced a contract to build a satellite called AMOS-8, touting the contract as a win. A few months later, on August 7, 2018, Spruce Point Capital Management issued a report questioning Maxarโs financial statements and alleging that โMaxarโs balance sheet [was] inflated with goodwill and overcapitalized intangible assets,โ estimating an impairment in intangible assets in the hundreds of millions of dollars. Then, in September 2018, Maxar revealed the loss of its AMOS-8 contract. In October 2018, the Company disclosed $345.9 million in impairment losses and $37.7 million impairment charges related to its GeoComm business. In addition to these disclosures, on January 7, 2019, Maxar announced its WorldView-4 โ[would] no longer produce useable energyโ because it had lost stability.
The class case will likely settle in the short term and shareholders who have held since at least March 2018 can make a demand for better corporate governance and a return of funds expended in defending litigation back from D&O policies. They can also seek a cash incentive award - all at no cost.
I can send more info. Email me at jgrabar@grabarlaw.com
Best regards,
Josh Grabar