Risk & Compliance

SEC Ends Probe of XM Satellite Radio

The commission had asked for documents from the radio company concerning its subscriber targets and costs associated with trying to reach those tar...
Stephen TaubDecember 10, 2007

The Securities and Exchange Commission has finished its investigation of how XM Satellite Radio handles subscriber data, stock options, and other matters and won’t pursue enforcement actions, according to the radio company.

In September 2006, XM reported that the SEC launched an informal inquiry into the company’s past financial disclosures. On Aug. 31 of that year, the commission had requested documents from XM concerning its subscriber targets and costs associated with trying to reach those targets, among other matters, during the third and fourth quarters of 2005.

In recent weeks, the SEC has dropped probes of historical stock options practices at a number of companies without taking any action. Rambus, for instance, made such an announcement last week.

In late November, Computer Sciences and Sepracor Inc. both announced that they received notices from the SEC informing them that probes into their historical option-granting practices had been completed and that no enforcement action was recommended.