Shareholders of Sirius Satellite Radio Inc. sued the company Wednesday for
not disclosing that it would be delaying its launch.
'Defendants knew, or recklessly disregarded, that it would be impossible for
Sirius to offer its service commercially by the end of 2000, as initially
disclosed, or early in 2001, as subsequently disclosed,' the complaint said.
The lawsuit also said Sirius executives 'issued materially false and
misleading statements and press releases concerning when the company's service
would be commercially available, which caused the market price of Sirius common
stock to be artificially inflated.'
Sirius' stock has traded as high as $35.50 per share, but it closed Wednesday
Sirius said last month that it would launch in three markets this February
and roll out its full service by the end of next year.
Sirius' only competitor, XM Satellite Radio Holdings, launched nationwide