The Globe and Mail reports in its Friday edition that MDA Space is facing a class-action lawsuit alleging misrepresentations under Ontario's Securities Act and insider trading related to a major contract's announcement and cancellation last summer. The Globe's Irene Galea writes that in the statement of claim for their proposed lawsuit, plaintiffs claim they are owed $340-million in damages, plus costs. The allegations have not been tested in court. MDA said it finds the allegations unfounded and will defend itself in court. Two shareholders allege that MDA failed to properly inform investors of the risks related to a $1.8-billion contract with U.S. telecom EchoStar. MDA announced the deal in early August, but it collapsed just over a month later. The plaintiffs allege that MDA leaders knew, or should have known, that EchoStar was under regulatory and political pressure to sell certain spectrum rights to a competitor before making its deal announcement and that EchoStar had been facing financial difficulties for months, yet the leaders made no reference to these risks. MDA's next step will be to file a statement of defence, which could come after the plaintiffs have sought their certification and leave to proceed.