As we learned yesterday, a federal judge has dismissed the class action lawsuit alleging securities fraud against XM Satellite Radio Holdings Inc.

Judge Ellen Segal Huvelle of the U.S. District Court for the District of Columbia said the suit, "failed to identify any materially misleading statements or omissions" by XM Satellite Radio that would support a lawsuit.

A group of XMSR shareholders argued that XM executives predicted in mid-2005 that their marketing costs for subscriber acquisition would decline or stabilize. But early last year it was revealed that XM's marketing expenses had significantly increased - causing shares to drop about 28% - and these investors sought to recover these financial losses they incurred for stock or stock options.

But Huvelle ruled that the company's projections of its marketing costs were "forward-looking statements...accompanied by meaningful cautionary language" and therefore shielded from lawsuits.

The plaintiffs also failed to show that XM's statements "lacked a reasonable basis when made," Huvelle wrote.

[AP] 

The Class Action lawsuit that was filed against XM Satellite Radio Holdings Inc, on behalf of purchasers of XMSR common stock has been dismissed by the judge.

An SEC disclosure has been filed giving a bit more detail:

Securities Class Action Litigation Dismissed. On March 28, 2007, our motion to dismiss the previously disclosed securities class action litigation was granted and the case dismissed with prejudice. The court concluded that “plaintiffs have failed to identify any materially misleading statements or omissions that are actionable under Section 10(b)” of the Securities Exchange Act of 1934. 

Year-over-year retail sales fell 33% in February, an increase from the 44% drop in January (and 46% drop in December). Remember that this time last year was when we were just beginning to slide down the Stern Effect, so YoY comparisons are going to get easier from this point forward.

The Quick Glance:

• Sirius February 2007 Retail Sales:
  Down 31% YoY
• XM February 2007 Retail Sales:
  Down 35% YoY

• Sirius Feb '07 Retail Marketshare: 56%
• XM Feb '07 Retail Marketshare: 44%

Sirius continues its lead in retail marketshare, gaining a percentage point from January (if your math is rusty: Sirius had 55% retail marketshare in January, while XM had 45%). Still, considering the dismal retail sales numbers from December (particularly for XM) any signs of improvement is good news.

Baring any unforeseen hickups in production, we can easily expect retail sales YoY numbers to rise in the coming months.