Archive for September, 2011

Class Action Lawsuit – Sirius XM

Sirius XM is involved in a class action lawsuit dating from 2009.  This is still an open case.

The case was brought about after the satellite radio company purchased its competitor XM Satellite Radio during 2008 and then raised its prices.  So in effect it removed its competition and put up its prices.  During this time it also raised the fee on music royalties.  This brought about the allegations of antitrust violations.

sirius xm class action lawsuit

Approval for mergers of these type must come from the U.S. Federal Communications Commission and the Justice Department.  Sirius XM made certain promises to get this approval.  They broke certain promises and this is also contained in the class action lawsuit.

In their defense Sirius XM stated that they were faced with higher costs after the merger.

A settlement was reached in the lawsuit and preliminary approval was given during May 2011.  Approval must be satisfactory to both sides if the settlement is to be successful.

 

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