Maxar Technologies Inc. (TSX & NYSE: MAXR, FRA: 2JD, SIX: PB609)
Ontario Superior Court of Justice, Court File No.: CV-19-00631107-00CP
This securities class action relates to the Defendants releasing core documents which contained untrue statements of material fact regarding Maxar’s intangible assets and earnings per share (EPS), thereby distorting the Company’s perceived value and share price. The Plaintiff, personally and on behalf of the Class he seeks to represent, alleges that Maxar’s value and share price were artificially inflated after February 22, 2018 when the Company released its 2017 annual audited financial statements and MD&A, containing the alleged misrepresentations regarding Maxar’s intangible assets and EPS.
On August 7, 2018, the investment research and short selling firm, Spruce Point Capital Management LLC, released a document, widely distributed across the internet, that it had discovered that Maxar had engaged in an alleged accounting scheme to artificially inflate its intangible assets to overstate the non-IFRS metric, EPS. Upon the release of this public corrective statement, the price of Maxar’s common shares listed on the TSX dropped from $50.14 to $42.55 per share, or down 13.15%. Maxar vehemently contested the allegations in this report.
Subsequently on October 31, 2018, Maxar released its financial statements and MD&A for the three and nine-month period ended September 30, 2018, announcing that it had determined during the third quarter of 2018 that despite its aggressive objections to the August 7, 2018 report, it should reduce its guided 2018 EPS by $0.25 and take a $260.3 million impairment of its intangible assets. Upon the release of this public corrective statement, the price of Maxar’s common shares listed on the TSX dropped from $35.49 to $19.68 per share, or down 44.55%.
Order of the Honourable Justice Glustein dated February 7, 2020 re discontinuance of O’Brien v Maxar Technologies Inc., Court File No. CV-19-00613564-00CP. Download Here