NEW ORLEANS, May 24, 2006 (PRIMEZONE) -- Kahn Gauthier Swick, LLC ("KGS") announces that shareholders have only until July 3, 2006, to move the Court to serve as Lead Plaintiff in the securities class action lawsuit commenced in the U.S. District Court for the District of Columbia, on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock of XM Satellite Radio Holdings, Inc. (Nasdaq:XMSR) between July 28, 2005 and February 15, 2006. No class has yet been certified in this action.
Institutional investors are strongly encouraged to move for lead plaintiff status.
As investors have now learned, defendants appear to have misrepresented XMSR's ability to achieve subscriber acquisition cost goals, and omitted to disclose that excessively large marketing expenditures would be needed through 2005 even to reach XMSR's revised subscriber growth projections. It was only on February 16, 2006, however, that XM disclosed to investors the fact that XMSR's subscriber acquisition costs were skyrocketing. Shares of the Company immediately fell 13% to close at $21.96 on February 17, 2006, and have subsequently fallen further to around $17.00 per share. Today, however, shares fell to a 52-week low, closing at $13.75 per share, after the Company again lowered subscriber projections. While shareholders of the Company have seen billions of dollars of market capitalization eviscerated, during the class period, several key insiders of XMSR made huge sales of their personal holdings in the fourth quarter of 2005 -- taking advantage of the artificial inflation of XMSR's common stock and selling almost $70 million in their privately held shares during that time.
If you purchased shares of XMSR between July 28, 2005 and February 15, 2006 and wish to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Lewis Kahn of KGS toll free 1-866-467-1400, ext. 106, or by email at lewis.kahn@kglg.com. Further information is available at http://www.kglg.com/case/case.asp?lngCaseId=4799.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.