LOS ANGELES, May 21, 2006 (PRIMEZONE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the District of Columbia on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired the common stock of XM Satellite Radio Holdings Inc. ("XM" or the "Company") (Nasdaq:XMSR) between July 28, 2005 and February 15, 2006, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges XM and the Company's chief executive officer with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning XM's operations and prospects caused the Company's stock price to become artificially inflated, inflicting damages on investors. XM operates as a satellite radio service, providing music, news, information, entertainment and sports programming to vehicle, home and portable radio receivers, primarily in the United States. The Complaint alleges that defendants' Class Period statements concerning XM were materially false and misleading because defendants knew or recklessly disregarded and failed to disclose that (i) XM was unable to attain its stated subscriber goal of 6 million subscribers at year end, without increasing its costs to acquire new subscribers; (ii) in order to achieve its subscriber goal, XM would be making huge expenditures during fourth-quarter 2005, thereby increasing the Company's new-subscriber acquisition costs; (iii) as a result of these expenditures, the Company's net losses were substantially increased, contrary to the declining subscriber acquisition costs and net losses touted by defendants; and (iv) as a result of the foregoing, defendants' statements concerning the Company's continued ability to lower its subscriber acquisition costs were lacking in any reasonable basis.
On February 16, 2006, defendants shocked the market when XM issued a press release announcing the Company's financial results for fourth-quarter and full-year 2005. The disclosure of its increased subscriber acquisition costs caused XM shares to plummet 13 percent, to close on February 17, 2006, at $21.96 per share on unusually heavy trading volume. The next day, XM shares continued to fall, losing an additional 10 percent, to close on February 17, 2006, at $21.57 per share.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than July 3, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.