The Securities and Exchange Commission is looking into how XM Satellite Radio determines its subscriber targets and the costs associated with trying to reach those goals.
XM disclosed in an SEC filing this week that the questions from the SEC “appear to pertain to matters similar to the issues underlying the previously disclosed securities litigation filed against us earlier this year.” This refers to a lawsuit filed by shareholders that claims the company did not accurately project or disclose higher-than-anticipated costs involved in making its subscriber targets for the second half of 2005.
The satcaster said it is cooperating in what it says is an informal inquiry.
SEC Questions XM About Subscriber Targets, Expenses
SEC Questions XM About Subscriber Targets, Expenses
