Tyler, Brandon and Charles,
I know one of you listened in, if not all three, what is your opinion?
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Tyler, Brandon and Charles,
I know one of you listened in, if not all three, what is your opinion?
SIRIUS SHAREHOLDERS FIGHT BACK AND ACCUSE MANAGEMENT OF RACKETEERING. (RICO)
A group of incensed shareholders, over 500 strong and growing, have banned together and accused SIRIUS XM management of unjustly enriching themselves at the expense of the corporation.
A derivative suit on behalf of the Corporation has been filed in the United States District Court, Central District of California, Southern Division. Case number SACV08-00790CJC
Case accuses management of violations of the FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO), BREACH OF THE FIDUCIARY DUTY AND THE SHERMAN ACT.
This suit seeks to prevent management from further damaging its shareholders (i.e. the corporation)
with massive amounts of further dilution (8 billion shares in the fully diluted float) and as much as a 1 for 50 reverse stock split.
We are working to gain control of our company by seeking to remove current members of the board as well as top executive Mel Karmazin. Mr. Karmazin said in an interview on September 15th 2008 with Sarah McBride of the Wall Street Journal “Given SIRIUS XM low stock price Mr. Karmazin said he would love to take the company private.” But given the state of the credit market, “How do you find [the money] today?” If the company was generating positive cash flow, which he expects it to do for the full year in 2009, privatization would become much more feasible, he says.
Given Management’s history,
Locking their shareholders into the longest merger delay in history.
Preventing the Corporation from seeking alternatives or potential suitors.
Failing to commercially introduce interoperable radios.
Their insistence on going forward with the merger at any and all costs.
Consummating the merger issuing 300 million shares to the financiers of XM’s debt to be sold short on the open market.
Mr. Karmazin and the board have severely damaged shareholder value in violation of their fiduciary duties.
In light of aforementioned, it is clear that they have lost sight of their obligations to the Corporation and have breached and will continue to breach their fiduciary duties in the future. We, as a group will not stand for this and will use any means possible to prevent and preclude them from stealing this company from its rightful owners-we the shareholders.
Contact:
Michael Hartleib
(714) 927-5898
savesirius@gmail.com
Man. The longer we go without a refinance deal and the closer we get to a 1 for 50 reverse split on December 18th.....the MORE I'm liking this Hartleib dude.
I never thought I'd say that, but there is alot of pent up frustration and anger shareholders like me are feeling. It was easy when it was directed at the monolithic FCC and the evil NAB.
But after that "ugly" deal Mel struck to close the merger which sold us out to the shorts....we felt betrayed.
This feeling of betrayal was ratcheted up a notch when Mel promised NO Reverse Split or further dilution at the same time Sirius issued a proxy asking for a 1 for 50 Reverse split and 4 BILLION more shares of dilution!!!
I am the FURTHEST thing from a conspiracy nut....but it's hard to ignore all the broken promises and lies Mel has told so far. Perhaps his calling shareholders "unsophisticated" was a freudian slip that belied his TRUE intentions. Maybe he felt he could exploit the shareholders seemingly blind devotion forever.
But after the merger fiasco...and the price drop to 20 cents....does he REALLY think we'll just willingly VOTE YES AGAIN????
Just because we gave him the green light for the Merger....doesn't mean he can expect us to say YES to a Reverse Split and further dilution.
friggin - I'm in your court. You can pretty much speak for me too.
I did not listen to the call. I was busy with other things this weekend. Investors who did listen can comment here though.
I suggest you all get on board with Hartlieb. You should have been on today's conference call. There is no doubt in my mind that Hartlieb is on target with this suit. We need to band together and go after Mel. He has ****ed all us shareholders and will bury us unless we fight back. Mel has done nothing in defense of the shareholders. The manipulators continue to naked short this stock. Mel knows who it is and just stands on the sidelines and watches. A R/S kills us. A 1/40 split brings the price to $8 and Mel sells the company privately for $16. Your .38 per share is now worth .76 and your are out on your ass. This is potentialy what could happen if you vote yes.
Question when did hartieb become voice of all of us, Hartieb ain't my voice.
Aren't we being a little presumptive in these accusations? I think Mel and the rest of the Board realize that many of their clients are also shareholders and by screwing us, they may screw their own company. I, for one, am both an investor and client. I can assure you that if Me & Co. demolish my investment in this company, that I will certainly cancel end my patronage to their services and encourage everyone else I know to do the same. Surely SIRI's executives are cognizant that I am not alone in this thinking.
My completely subjective and unsubstantiated take on all of this, is that Mel has a great plan which he is not willing to share yet. A plan with the shareholders interest at heart. I believe his delay sharing his plan(s) are because they are not final and the release of more arbitrary and speculative information would further aggrevate the shareholders and give Wall Street further reason to beat the stock up.
Example- News headlines from SIRI last month announce that 50 people were laid off from SIRI/XM in order to begin realizing savings from the merger. I know for a FACT that number was well over 250 people, just in the D.C. XM Operations hedquarters alone. Again, I am not sure why Mel wouldn't announce the full headcount reduction numbers, but I can only assume he has some reason that he is not willing to share yet.
I share the common concensus which many members of this forum do, that Mel is not being forthright quickly or effectively to date. But I also believe that this man is a VERY shrewd, well connected, confident and capable leader. I expect that once ABSOLUTE plans, which will give SIRI the boost that it needs, that an immediate conference/announcement will be broadcast for the world to hear.
Let's maintain our aggregate faith, as faith is our greatest asset right now.
Sunnyside up and GO REDSKINS!!!!!!!!!
Whynot
The mere fact that Mel has not supported the shareholder makes him guilty. His silence is deafening.
Further proof is that Mel had no plans in place upon merger approval. Because his job was only to get the two companies merged for Leon Black, whom brought Mel out of retirement. Mel will be well compensated by Leon Black in the end. Mel's skin in the game is only a smoke screen. He stands to lose nothing.
XM...YOU hit it on the head about Mel. TO HELL WITH MEL!!!
No offense, but you have NO idea of what their plans were or weren't upon merger closing.
I know you'll respond and say that had he had a plan in place -- then things wouldn't be like they are right now, but that argument is bogus. Because even the most detailed of plans set up ahead of time can come crashing down for many various reasons. With the crash of the debt market as the merger was closing -- it is very possible (if not likely) -- that the crash would have killed any plan set up ahead of time. Don't believe me? Look at the Clear Channel deal to go private. They had their refinancing completely set up -- and publicly announced -- ahead time only to have it fall apart due to the crashing of the debt market.
IMHO, I believe that you are being very presumptuous about such a claim.
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Well, are you happy now with what your hero, Hartlieb just did to the stock price, and the value of your investment?
Do you really believe that he is working for YOUR best interest?
Any upside momentum has just been broken. I expect to see it back down to the mid twenties again.
Way to go!
And FWIW, I wish the best of luck to those of you joining Hartleib -- not Hartleib himself -- but those of you who are joining him. I hope you've shielded yourself from the possible countersuits.
Reading his complaint only confirmed my suspicions about him that I've discussed at length... he is only furthering his agenda that he has had for a couple years now. But now he's suckering in you guys to help foot the bill, playing off your emotions of a depressed stock price. Emotions need to be checked at the door when it comes to the stock market.
Ask yourself this... if Karmazin did do what Hartleib claims, taking the company private at a cheap price -- do you really believe that there wouldn't be a slew of lawsuits? Of course there would. Or do you believe that there wouldn't be a bunch of lawsuits if any of the accusations that Hartleib made came true? Of course there would. So why then would you rush out to join Hartleib now, being a party to potentially libelous statements and putting yourselves in a position for a countersuit?
If any of what Hartleib alleges is true, then there will be lawsuits out the wazzoo that all shareholders could be a party to -- and not have to worry about reprecussions -- due to a disgruntled shareholder with an ax to grind against the company. I have no problem sitting on the sidelines watching you guys take the bullet. If it's true, I'll have no problem joining one of the OTHER numerous lawsuits that would be filed -- but I trully believe that that won't happen. So for now, best of luck to you... I hope you're protected.
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HOMER
If you read the actual lawsuit...Michael is the only one named as plaintiff in the papers as suing...not the other 500 mentioned in his press release.
EXACTLY my point. Where is the benefit to the other 500 shareholders?
I actually believe that Mr. Hartlieb is trying to kill the stock. Filing a lawsuit is one thing. But what is the purpose of publicizing it by sending copies to every news organization and internet site?
I will wait for the q3 synergys, outlook and what mell has for us before I start the concpieracy therory etc.. remember this will be the first qrt since we merged and mell has been cutting costs etc.. hartlieb and others will look like an ass if mel has refinancing we beat est.. and stock shooys up to .75$ in a day:thumbup:
What Apex said.