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Case Status:    SETTLED
On or around 09/09/2013 (Date of order of final judgment)

Filing Date: March 15, 2007

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.

COMPANY INFORMATION:

Sector: Services
Industry: Broadcasting & Cable TV
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: WRSP
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 07-CV-02252
JUDGE: Hon. Richard M. Berman
DATE FILED: 03/15/2007
CLASS PERIOD START: 08/04/2005
CLASS PERIOD END: 05/09/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Labaton Sucharow & Rudoff LLP
    100 Park Avenue, 12th Floor, Labaton Sucharow & Rudoff LLP, NY 10017
    212.907.0700 212.818.0477 · info@labaton.com
  3. The Rosen Law Firm, P.A. (New York)
    350 Fifth Avenue, Suite 5508, The Rosen Law Firm, P.A. (New York), NY 10118
    212.686.1060 212.202.3827 · lrosen@rosenlegal.com
  4. Zwerling Schachter & Zwerling LLP
    845 Third Avenue, Zwerling Schachter & Zwerling LLP, NY 10022
    212-223-3900 212-371-5969 · inquiry@zsz.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 07-CV-02252
JUDGE: Hon. Richard M. Berman
DATE FILED: 08/09/2007
CLASS PERIOD START: 08/04/2005
CLASS PERIOD END: 03/16/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky (New York, 42 Street)
    60 East 42 Street, Abraham, Fruchter & Twersky (New York, 42 Street), NY 10021
    212.687.6655 ·
  2. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  3. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
No Document Title Filing Date