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SIRIUS Shareholders File Suit Against SIRIUS XM Radio Management
By: PR Newswire
Nov. 3, 2008 06:00 AM
A group of incensed shareholders, over 500 strong and growing, have banned together and 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
The case accuses management of violations of the FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO), BREACH OF THE FIDUCIARY DUTY AND THE SHERMAN ACT.
This suit seeks to prevent management from further damaging its shareholders with massive 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
It is clear that management under Mr. Karmazin's leadership has an agenda to steal this company from its shareholders.
Given Management's history of: -- Locking their shareholders into the longest merger delay in history; -- Preventing the Corporation from seeking alternatives or potential suitors; -- Failing to commercially introduce interoperable radios; -- Their insistence on going forward with the merger at any and all costs; -- Consummating the merger issuing 300 million shares to the financiers of XM's debt to be sold short on the open market
Mr. Karmazin and the board have severely damaged shareholder value in violation of their fiduciary duties. Shareholders have lost over 90% of their value under Mr. Karmazin's leadership.
"In light of the aforementioned, it is clear that they have lost sight of
their obligations to shareholders and have breached and will continue to
breach their fiduciary duties in the future. We, as a group, will not stand
for this and will use any means possible to prevent and preclude them from
stealing this company from its rightful owners -- we the shareholders," said
Contact: Michael Hartleib (949) 795-0580 firstname.lastname@example.org
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