Maxar Technologies (MAXR) $27M Shareholder Settlement
Maxar Technologies Inc. | $MAXR pays $27 million to shareholders settling the claims over misrepresenting the book value of key assets.
The complaint alleged that the Company and certain executives made materially false and misleading statements in and omissions from Maxar’s public filings and on public conference calls with financial analysts concerning:
the Company’s reported balance sheet assets concerning its geostationary communications satellite business (GEO);
a GEO satellite contract known as AMOS-8.
As a result of the misrepresentations and omissions, the price of $MAXR was artificially inflated, and when Maxar announced that it would take a $383.6 million impairment charge and that the AMOS-8 would be built in Israel and funded by the Israeli government, the price of Maxar stock declined, thereby damaging shareholders.