LOS ANGELES, May 31, 2006 (PRIMEZONE) -- Yourman Alexander & Parekh LLP, a law firm with extensive experience in prosecuting claims for securities and consumer fraud, announces that a lawsuit seeking class action status has been filed on behalf of shareholders who purchased or otherwise acquired the securities of XM Satellite Radio Holdings, Inc. ("XM" or the "Company") (Nasdaq:XMSR) during the period July 28, 2005 through February 15, 2006, inclusive (the "Class Period"). The matter is pending in the United States District Court for the District of Columbia.
The complaint alleges in part that defendants violated federal securities laws by making false and misleading statements concerning the financial condition of XM. For example, it is alleged that defendants misrepresented XM's ability to reduce the costs of its new subscribers as it reached its goal of 6 million subscribers by year end 2005. It is further alleged that XM's cost of subscriber acquisition rose to extraordinary levels, which led to enormous increases in XM's net losses. Furthermore, it is alleged that a number of Company insiders sold significant portions of their XM stock for millions of dollars, thereby taking advantage of the artificial inflation of the Company's securities. The complaint also states that when the true financial condition of the Company was revealed on February 16, 2006, the price of XM's common stock fell 13% to close at $21.96 per share. Since that time, the price of XM stock has continued to decline, closing at $14.42 per share on May 31, 2006.
Since a class has not yet been certified, you are not represented by counsel in this matter. If you purchased or acquired XM securities from July 28, 2005 through February 15, 2006, inclusive, and suffered a loss, the deadline to move for appointment as Lead Plaintiff is July 3, 2006. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The securities laws require the Court to consider the class member(s) with the largest financial interest, i.e. the largest financial loss, as presumptively the most adequate Lead Plaintiff(s). In order to serve as a Lead Plaintiff, you must meet certain legal requirements. While your ability to share in any recovery is not affected by your decision of whether or not to seek appointment as a Lead Plaintiff, Lead Plaintiffs are responsible for making important decisions which could affect the overall recovery for class members, including decisions concerning settlement.
If you: (i) wish to discuss this action, have information concerning this case, or acquired shares through your XM retirement account; (ii) have questions concerning this Notice or your rights or interests with respect to this litigation; or (iii) have any other potential matters that you would care to discuss, please contact Vahn Alexander of Yourman Alexander & Parekh LLP, 3601 Aviation Blvd., Suite 3000, Manhattan Beach, California 90266 by telephone, toll-free at (800) 725-6020, or by email to valexander@yaplaw.com. There will be no obligation or cost to you concerning your inquiry. For more information please visit www.yaplaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.