Shareholders Fighting SIRIUS XM To The Core (SIRI)

Discussion in 'SiriusXM Soundwave Cafe' started by Brian, Nov 3, 2008.

  1. Brian

    Brian Banned

    24/7 Wall St.: Shareholders Fighting SIRIUS XM To The Core (SIRI)
    If you are one of the hundreds of thousands of investors following penny stocks and low-priced stocks such as SIRIUS XM Radio Inc. (NASDAQ: SIRI), then you will not be surprised to learn that more than 500 shareholders are going after SIRIUS XM's management.

    According to a press release, the group is using racketeering laws laws under the RICO Act, breach of fiduciary duties, and the Sherman Act.

    The goal is to oust management and to prevent further dilution and a possible reverse stock split. It may also prevent Mel Karmazin from being able to take the company private as some reports and speculators have discussed.

    Based upon the horrible share price performance and questions over whether or not Sirius will be able to keep its stock exchange listing, it is really difficult to think that a large shareholder group won't be able to be ignored by the company or by the media to force at least some of the changes.

    Jon C. Ogg
    November 3, 2008

    Below is a copy of the full release which was sent directly to us from the "Save SIRIUS" source.


    SIRIUS Shareholders File Suit Against SIRIUS XM Radio Management

    LOS ANGELES, Nov. 3 /PRNewswire/ -- The following is being issued by
    "Save Sirius":

    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 California, Southern
    Division. Case number SACV08-00790CJC

    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 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."

    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 Michael Hartleib, on behalf of Save Sirius and its members.

    Contact:
    Michael Hartleib
    (949) 795-0580
    savesirius@gmail.com
     
  2. Brian

    Brian Banned

    oh dear. i reposted.
     

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