WorldSpace $55m ‘class action’ will continue

Chris Forrester

Documents recently filed at the Delaware Bankruptcy Court confirm that a consolidated Class Action lawsuit will continue against WorldSpace, certain of the company’s directors, and others concerned with WorldSpace’s Initial Public Offering. The allegation is that the company, in its IPO prospectus, deliberately overstated subscriber numbers.

The latest developments on the action (WorldSpace Securities Litigation 07/2252, in US District Court, Southern District of New York) were filed on Feb 4 when the Lead Plaintiff in the action filed a class proof of claim in the amount of “not less than $55.4m”.

WorldSpace is currently emerging from its Chapter 11 bankruptcy, and the Court dealing with this was advised formally by lead counsel of the latest developments on May 12.