Kessler Topaz Meltzer & Check, LLP Announces Investor Securities Fraud Class Action Lawsuit Filed Against Maxar Technologies Inc.

The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an
investor securities fraud class action lawsuit has been filed against
Maxar Technologies Inc. (NYSE: MAXR) (“Maxar”) on behalf of purchasers
of Maxar securities between March 29, 2018 and January 7, 2019,
inclusive (the “Class Period”).

Maxar investors who purchased securities during the Class Period
may, no later than March 15, 2019, seek to
be appointed as a lead plaintiff representative of the class.

Investors who wish to discuss this securities fraud class action lawsuit
or request additional information about this litigation are encouraged
to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or
Adrienne Bell at (888) 299-7706 or online at: www.ktmc.com/maxar-securities-class-action.

According to the complaint, Maxar is a leading global provider of
advanced space technology solutions for commercial and government
markets including satellites, Earth imagery, geospatial data and
analytics. On October 5, 2017, Maxar (doing business under the name
MacDonald, Dettwiler and Associates Ltd. at the time) purchased
DigitalGlobe, Inc. (“DigitalGlobe”), an American commercial vendor of
space imagery and geospatial content, for $2.4 billion dollars. As part
of the purchase, Maxar acquired DigitalGlobe’s satellites, called the
“WorldView Legion,” including the WorldView-4 satellite (“WorldView-4”).
WorldView-4 is equipped with control moment gyros (“CMGs”), which are
attitude control devices generally used in spacecraft attitude control
systems.

The Class Period commences on March 29, 2018, when Maxar filed an annual
report on a Form 40-F with the SEC, announcing Maxar’s financial and
operating results for the year ended December 31, 2017. Appended to the
annual report was Management’s discussion and analysis (“MD&A”), dated
February 22, 2018. The MD&A stated that Maxar acquired “intangible
assets, consisting of customer relationships, backlog, technology,
software, and other intellectual property” in its 2017 acquisition of
DigitalGlobe. More specifically, the MD&A stated that Maxar incurred
$1.439 billion in intangible assets related to the acquisition of
DigitalGlobe, and an additional $1.668 billion in goodwill.

According to the complaint, on August 7, 2018, Spruce Point Capital
Management (“Spruce Point”) published a research report on Maxar. The
report alleged, in part, 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 asserted 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 this news, the price of Maxar common
stock fell $5.97 per share, or 13.44%, to close at $38.44 on August 7,
2018.

Then, on January 7, 2019, Maxar disclosed that WorldView-4 experienced a
failure in its CMGs, preventing it from collecting imagery due to the
loss of an axis of stability. It was further disclosed that the
WorldView-4 satellite will likely not be recoverable and will no longer
produce usable imagery. Following this news, Maxar’s stock price fell
$5.69 per share, or 48.5%, over the subsequent two trading days, to
close at $6.03 per share on January 8, 2019.

The complaint alleges that throughout the Class Period, the defendants
made false and/or misleading statements and/or failed to disclose that:
(i) Maxar improperly inflated the value of its intangible assets, among
other accounting improprieties; (ii) Maxar’s highly-valued WorldView-4
was equipped with CMGs that were faulty and/or ill-suited for their
designed and intended purpose; and (iii) as a result, Maxar’s public
statements were materially false and misleading at all relevant times.

Maxar investors may, no later
than March 15, 2019, seek to be appointed as a lead
plaintiff representative of the class through Kessler Topaz Meltzer &
Check, or other counsel, or may choose to do nothing and remain an
absent class member. A lead plaintiff is a representative party who acts
on behalf of all class members in directing the litigation. In order to
be appointed as a lead plaintiff, the Court must determine that the
class member’s claim is typical of the claims of other class members,
and that the class member will adequately represent the class. Your
ability to share in any recovery is not affected by the decision of
whether or not to serve as a lead plaintiff.

Kessler Topaz Meltzer & Check prosecutes class actions in state and
federal courts throughout the country involving securities fraud,
breaches of fiduciary duties and other violations of state and federal
law. Kessler Topaz Meltzer & Check is a driving force behind corporate
governance reform, and has recovered billions of dollars on behalf of
institutional and individual investors from the United States and around
the world. The firm represents investors, consumers and whistleblowers
(private citizens who report fraudulent practices against the government
and share in the recovery of government dollars). The complaint in this
action was not filed by Kessler Topaz Meltzer & Check. For more
information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.

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