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XM Satellite Radio Holdings Inc. Class Action Dismissed



Washington, DC: (Mar-29-07) Shareholders tried to file a class action lawsuit against the company alleging securities fraud. The lawsuit was filed in the United States District Court for the District of Columbia before the Honorable Ellen Huvelle on behalf of purchasers of the common stock of XM Satellite Radio Holdings, Inc. between July 28, 2005 and February 15, 2006. XM shareholders claimed XM Satellite Radio stock prices were based on the number of its subscribers and marketing costs associated with attracting clients. The suit charged that XM executives predicted in mid-2005 that their marketing costs for acquiring new subscribers would decline or stabilize. When XM disclosed in February 2006 that its marketing expenses had significantly increased, its shares dropped almost 28.5%. Judge Huvelle dismissed the class action lawsuit for failing to identify any materially misleading statements or omissions by the company that would support a lawsuit. [BUSINESS WEEK: XM SECURITIES DISMISSED]


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