Maxar Technologies Inc. (MAXR) Accused of Inflating the Value of its Intangible Assets

According to the complaint, in October 2017, MacDonald purchased DigitalGlobe and acquired DigitalGlobe's satellites, including the WorldView-4 satellite. Unbeknownst to investors, the WorldView-4 – which had a net book value of approximately $155 million – was equipped with faulty devices that would ultimately render the satellite unusable. On August 7, 2018, Spruce Point Capital Management reported that Maxar Technologies Inc. (MAXR) acquired DigitalGlobe to inflate its intangible assets and engaged in an aggressive accounting scheme to inflate Non-IFRS earnings by 79%. On January 7, 2019, Maxar revealed that WorldView-4 experienced a failure and that the satellite would not be recoverable and would no longer produce usable imagery. Since news of Maxar's troubles became public, the company's stock plunged over 86% to close at $6.03 per share on January 8, 2019, and continues to fall.

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