I got his error today for the first time:

I ran apt-get in Gutsy and...

W: GPG error: http://security.ubuntu.com gutsy-security Release: The
following signatures were invalid: BADSIG 40976EAF437D05B5 Ubuntu
Archive Automatic Signing Key <[EMAIL PROTECTED]>

As discussed above the following command fixed this for me:

$ sudo apt-get update -o Acquire::http::No-Cache=true

-- 
apt-get update failing with bad signature.
https://bugs.launchpad.net/bugs/24234
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