XM off the hook


XM Satellite Radio reported in an SEC filing something the SEC itself already knew – that the SEC staff had wrapped up an investigation of XM reporting practices and decided against any enforcement action against the company. The investigation had involved XM’s reporting of subscriber data and stock options.
According to the filing: “XM Satellite Radio has been notified by the Staff of the Division of Enforcement of the Securities and Exchange Commission that the Division has completed its investigation, initiated in August 2006, relating to various matters including our historic practices regarding subscriber data and stock options. The SEC has advised that it does not intend to recommend any enforcement action.”

Purported class action lawsuits for the same issues were dismissed in March. The lawsuits had claimed that XM failed to give timely warning to investors about higher subscriber acquisition costs.