WorldSpace accused of issuing materially false and misleading statements about subscriber count
Saturday, March 24th, 2007
The Rosen Law Firm has filed a class action lawsuit in the US District Court for the Southern District of New York on behalf of a class consisting of all purchasers of the common stock of WorldSpace, Inc. pursuant and/or traceable to the Company’s August 4, 2005 Initial Public Offering. Purchasers of WorldSpace shares on the open market are also eligible to join the class action.
The Complaint charges that WorldSpace and certain of its present officers and directors violated Sections 11, 12 and 15 of the Securities Act of 1933 by issuing materially false and misleading statements about the Company’s subscriber count. The Complaint alleges that the Company included in its subscriber count accounts that had either expired or been “churned.” The Complaint alleges that the Company included these expired or “churned” accounts for at least 90 days after the accounts had expired or were otherwise non-paying. As a result of these adverse disclosures the Company’s stock fell and members of the Class were damaged.
A class action lawsuit has already been filed on behalf of WorldSpace shareholders. So far, there has been no official response from WorldSpace.
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