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Washington – The chief executive of XM Satellite Radio Inc., the biggest U.S. provider of pay-radio service, sold almost all his shares while making false statements about cost cuts, a group of investors claimed Thursday in a lawsuit.
The suit, which seeks class- action status, alleges that Hugh Panero, CEO of the Washington, D.C.-based company, misled investors about XM’s ability to reduce the cost of adding new customers as it tried to meet its goal of having 6 million subscribers by the end of 2005. Panero, formerly president of Request TV in Denver, sold 413,334 shares of XM on Dec. 6, representing 99 percent of his holding in the company, according to the complaint, which claims unspecified damages.
