WASHINGTON, D.C. – XM Satellite Radio Holdings and its 10-member board of directors face a shareholders derivative complaint in Federal Court accusing them of luring investors with false statements that XM would be able to reduce subscription costs as it reached its goal of 6 million subscribers by the end of 2005. Plaintiffs claim the board, whose members own 10.5 percent of XM shares, knew that XM would have to spend “extraordinarily large sums of money in the fourth quarter of 2005” to meet subscription goals, but concealed this from investors, and issued false and misleading financial statements throughout 2005.

Lead plaintiff the Booth Family Trust is represented by Kimberly Chadwick with Doherty, Sheridan & Persian of Arlington, Va.