HARTFORD, Conn., March 20, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the common stock of Worldspace, Inc. ("Worldspace" or the "Company") (Nasdaq:WRSP) pursuant or traceable to the Company's initial public offering ("IPO") commencing August 4, 2005.
The Complaint alleges that Worldspace, a company that designs, constructs and deploys a satellite-based radio and data broadcasting service providing various international and national radio programming services primarily to subscribers in India and China, and certain of its officers and directors violated Federal Securities laws. Specifically, defendants made materially false and misleading statements to the investing public and misrepresented or failed to disclose that expired subscriptions were included in the Company's subscriber count for as many as 90 days following expiration of an initial three-month promotional period, causing the Company's stock price to become artificially inflated. It is alleged that subscribers who declined to continue or to pay for a subscription were not timely removed from the Company's subscriber count; rather than report these subscriptions as expired, or "churned," defendants continued to include these subscriptions in the Company's subscriber count for an additional 90 days.
If you are a member of the class, you may, no later than May 15, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard, P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snlaw.net.