NEW YORK, March 20, 2007 (PRIME NEWSWIRE) -- Labaton Sucharow & Rudoff LLP filed a class action lawsuit on March 15, 2007 in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of WorldSpace, Inc. ("WorldSpace" or the "Company") (Nasdaq:WRSP) pursuant to the initial public offering (the "IPO") of WorldSpace commencing on or about August 4, 2005, (the "Class Period"). The lawsuit was filed against WorldSpace, Noah A. Samaram, Sridhar Ganesan, and UBS Securities LLC ("Defendants").
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/about/press/WorldSpace.cfm
The complaint alleges that Defendants violated Section 11, 12(a)2, and 15 of the Securities Act of 1933. The Complaint alleges that the representations made in connection with the sale of WorldSpace common stock in the IPO were materially false and misleading because the Company's share price was artificially inflated because subscribers who had purchased a three-month, pre-paid subscription to the WorldSpace "access control system" pursuant to a promotional offer, but who declined to continue or to pay for a subscription following the end of the promotional period were not timely removed from the Company's subscriber count. Rather than report these expired subscriptions as "churned," Defendants continued to include these expired subscriptions in the Company's subscriber count for an additional 90-days following the expiration of the initial three-month promotional period. At the time these facts and their effects on the Company's operating results were fully disclosed, the price of the Company's common stock declined.
On March 16, 2006, on a conference call with investors, WorldSpace revealed that service to subscribers was not immediately discontinued when a customer failed to renew its subscriptions. This news shocked the market, causing WorldSpace share to plummet the next day, March 17, 2006, by $2.63 per share, a more than 22% drop from the previous day's closing price of $11.52 per share.
Plaintiff is represented by the law firm of Labaton Sucharow & Rudoff LLP. Labaton Sucharow is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.
If you bought WorldSpace securities pursuant to the initial public offering "IPO" of WorldSpace commencing on August 4, 2005, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than May 15, 2007. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca