NEW YORK, May 26, 2006 (PRIMEZONE) -- Abbey Spanier Rodd Abrams & Paradis, LLP commenced a Class Action lawsuit in the United States District Court for the District of Columbia on behalf of a class (the "Class") of all persons who purchased or acquired securities of XM Satellite Radio Holdings, Inc. ("XM Radio" or the "Company") (Nasdaq:XMSR) between January 28, 2005 and February 15, 2006 inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of XM Radio securities. More specifically, the Complaint alleges that during the Class Period, defendants recklessly disregarded and failed to disclose to the public that XM Radio's huge expenditures in the fourth quarter of 2005, defendants failed to disclose to the market that XM Radio's cost of subscriber acquisition would rise to extraordinary levels, leading to huge increases in XM's net losses, which was in complete reversal of the trends of declining subscriber acquisition costs and net losses defendants were reporting throughout the Class Period.
On February 16, 2006, XM Radio announced the Company's fourth quarter 2005 and year-end 2005 results, which disclosed the truth about the skyrocketing level of XM Radio's subscriber acquisition costs in the fourth quarter of 2005. The market reacted negatively to this news and on February 17, 2006, XM Radio's shares fell 13 percent to close at $21.96.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired XM Radio securities during the Class Period. If you purchased or otherwise acquired XM Radio securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased XM Radio securities during the Class Period, you may, no later than July 3, 2006 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs.'' Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Spanier Rodd Abrams & Paradis, LLP has been retained to represent the Class. The attorneys at Abbey Spanier Rodd Abrams & Paradis, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of over one billion dollars for investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Nancy Kaboolian, Esq. or Susan Lee Abbey Spanier Rodd Abrams & Paradis, LLP 212 East 39th Street New York, New York 10016 (212) 889-3700 (800) 889-3701 (Toll Free) Or e-mail slee@abbeyspanier.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca