Satellite Radio Sued Over Subscriber Count

Law360, New York (March 19, 2007, 12:00 AM EDT) -- Satellite radio operator WorldSpace, Inc. and underwriters UBS Securities LLC and Cowen & Co. LLC have been hit with a proposed class action lawsuit for allegedly inflating the company’s stock price by artificially pumping up its subscription base.

The lawsuit alleges that WorldSpace, which operates mainly in India and China, included subscribers in its financial reports who stopped using the service after their trial subscriptions ended. The suit claims the satellite operator and its underwriters were negligent in failing to recognize “material misrepresentations and omissions” in...
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