WorldSpace, Inc. provides satellite radio broadcasting services and content on a subscription basis.

The original Complaint alleges that Defendants violated Section 11, 12(a)2, and 15 of the Securities Act of 1933. The Complaint alleges that the representations made in connection with the sale of WorldSpace common stock in the IPO were materially false and misleading because the Company's share price was artificially inflated because subscribers who had purchased a three-month, pre-paid subscription to the WorldSpace "access control system" pursuant to a promotional offer, but who declined to continue or to pay for a subscription following the end of the promotional period were not timely removed from the Company's subscriber count. Rather than report these expired subscriptions as "churned," Defendants continued to include these expired subscriptions in the Company's subscriber count for an additional 90 days following the expiration of the initial three-month promotional period. At the time these facts and their effects on the Company's operating results were fully disclosed, the price of the Company's common stock declined.

The Complaint further alleges that on March 16, 2006, on a conference call with investors, WorldSpace revealed that service to subscribers was not immediately discontinued when a customer failed to renew its subscriptions. This news shocked the market, causing WorldSpace share to plummet the next day, March 17, 2006, by $2.63 per share, a more than 22% drop from the previous day's closing price of $11.52 per share.

On June 22, 2007, the Court entered the Order consolidating several related actions and granting the motion to appoint Midtown Partners, Inc. as lead Plaintiff. On June 26, 2007, the Court entered the Order appointing lead Plaintiff Midtown Partners’ selection of Abraham Fruchter & Twersky LLP as lead Counsel. On August 9, 2007, the Plaintiff filed an Amended Complaint.

On July 21, 2008, a Decision and Order was entered denying the Defendant's motion to dismiss Plaintiffs' Complaint.

On October 11, 2012, the parties entered into a Stipulation and Agreement of settlement. On January 25, 2013, the Court issued an Order preliminarily approving the settlement.

On June 3, 2013, the Court issued an order certifying the settlement class, approving the settlement and the plan of allocation of settlement proceeds, and directing payment to class members.

On June 11, 2013, the Court issued an order approving attorneys' fees and expenses.

On September 9, 2013, the Court issued a Final Judgment and dismissed this action with prejudice.