SIRIUS Shareholders File Suit Against SIRIUS XM Radio Management
November 3, 2008 at 5:31 AM (PT)
A group of 500 shareholders, calling themselves "Save Sirius," have accused SIRIUS XM management of "unjustly enriching themselves at the expense of shareholders." A derivative suit on behalf of shareholders has been filed in the UNITED STATES District Court, Central District of CALIFORNIA, Southern Division.
The suit seeks to prevent management from further amounts of additional dilution (8 billion shares in the fully diluted float) and as much as a 1 for 50 reverse stock split.
"We are working to gain control of our company by seeking to remove current members of the board as well as top executive MEL KARMAZIN," said MICHAEL HARTLEIB on behalf of Save SIRIUS and its members. In a SEPTEMBER 15th 2008 WALL STREET JOURNAL article written by SARAH MCBRIDE, she states, 'Given SIRIUS XM's low stock price, Mr. KARMAZIN said he would love to take the company private. But given the state of the credit markets, How do you find [the money] today?' If the company were generating positive cash flow, which he expects it to do for the full year in 2009, privatization would become much more feasible, he says."