Sirius XM Class Action Lawsuit
Sirius XM was named in a class action lawsuit in 2009 and the case is still pending in federal courts. A major step forward was announced this week, as court approval was granted for a settlement with subscribers.
The satellite radio giant bought its only competitor, XM Satellite Radio, back in 2008. The Sirius XM class action lawsuit alleges antitrust violations because after the acquisition, the company raised its prices. Not only did it raise prices after elimination competition, it also raised music royalty fees.
The Sirius XM class action lawsuit also stated that the company broke promises it made. The promises were made in order to gain approval for the merger with XM Satellite Radio. Approval for mergers and acquisitions must be obtained from the U.S. Federal Communications Commission and the Justice Department.
Sirius XM claims that they raised prices after the merger because their costs were higher. Class action status was granted to the antitrust portion of the lawsuit. That was in March of this year. A settlement was reached before trial and preliminary approval for that settlement was given in May 2011.
Class action lawsuits that go into settlement before trial must also get approval for the settlement so that both sides are satisfied.
