XM Shares Fall on Flaw in 2 Satellites

Shares in satellite radio broadcaster XM Satellite Radio Holdings Inc. fell almost 31% on heavy volume after the company said a flaw in the two satellites at the heart of its newly launched service could cause them to be retired ahead of schedule.

The decline in XM shares was the largest single-day loss since the company went public in October 1999 and took the shares from an opening price of $6.28 to a session low of $4.02 before closing at $4.30 on Nasdaq, down $1.90.