Sirius investors applaud Howard Stern's legal loss

A judge tossed the shock jock's lawsuit against the satellite radio company this week.

By Kim Peterson Apr 17, 2012 3:13PM
Image: Laws (© Photodisc Green/Getty Images)Radio shock jock Howard Stern suffered a huge courtroom loss this week -- and Sirius XM (SIRI) shareholders could not be happier.

Shares of the satellite radio company were up 3% Tuesday after a judge threw out Stern's lawsuit demanding a $330 million payout. And the New York State judge made her feelings about the suit clear, dismissing it "with prejudice," which means Stern can't sue again based on the same set of facts, the Associated Press reports.

At issue was whether Stern should get stock awards for helping Sirius XM meet its subscriber goals.

Stern's radio show began broadcasting on Sirius in 2006, and Stern's lawsuit said he helped Sirius add at least 2 million subscribers a year for several years after that. Sirius paid $75 million to Stern's production company (and $7.5 million to his agent) after the first year, Reuters reports.

But the big question was whether Stern should get awarded for the subscribers that came in after Sirius bought XM Satellite Radio in 2008. Should those XM subscribers be counted when determining Stern's awards? Stern said yes, and the judge said no.

The judge examined the contracts, and said the only thing in them that mentioned XM or the merger was a requirement that Sirius pay $25 million to Stern's production company and $2.5 million to his agent if the merger went through, Reuters reports. Sirius made those payments.

Stern's only public comment about the ruling came from his show's Twitter feed: "Howard is really bummed that a judge has dismissed his lawsuit against Sirius. He plans on appealing."

Sirius shares have been on a slow climb, going from less than $1.50 last fall to $2.25 Tuesday.

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Tags: SIRI
20Comments
Apr 17, 2012 3:53PM
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What,the half a billion dollars they have paid him isnt enough?
Apr 18, 2012 6:52PM
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only in our glorious country can someone who has absolutely no talent, contibute nothing to society or the human race, make an **** of themselves on a daily basis, yet make millions and millions of dollars !!  his attorney should be applauded for selling and signing this POS to the geniuses who manage pay radio !!  personally i would shove sharp pencils into my ears before i would allow his voice to enter my ear canals !!   'nuff said ???
Apr 17, 2012 4:48PM
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Can anybody suck more than Howard Stern sucks? Why would anyone listen to this foul and buttugly scumbag? He should be charged with obscenity just  by showing his puckered pitted face in public!
Apr 17, 2012 4:19PM
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Typical of the idiot.  Stern thinks he is "entitled" to more compensation.  The fact is that he negotiated a poor contract.  Real talent negotiates compensation based up things like increased ratings, viewers, revenue, etc.  He screwed up and still thinks he is entitled to it.  (I would fire his manage if I were him...that guy is supposed to be handling the details.)
Oct 15, 2012 2:57AM
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Howard is scum. He used to be funny. Now he is a loser has been jerk wad.
Apr 17, 2012 6:59PM
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CEOs "Celebrities" how can one person ever use all this money in one lifetime are they using  it  to solve the problems of the world any of them?At this point it has degenerated into piles and piles of BabaBaloney.......
Apr 17, 2012 3:56PM
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I have to agree with the judge to a point. He shouldn't recieve monies for those who were gained by the merge that stayed at XM Select , that does not include Howard or a few other channels. However he should recieve monies from the XM listeners who upgraded to XM premier to be able to have Howard, as I'm sure a few did. 

@ AgainstGovernmentWaste.  He gets paid that much because more people listened to him than any other thing that was on the radio in whatever area he was in. Even those who hate him listened longer than those who like him. He made his radio stations a ton of money. He learned real fast that sex sells. Something that there is plenty of  today is in most TV commercials and shows because it makes money. If he's creepy or up there with a child molester what does that say about the majority of radio listeners? He may be creepy but he's laughing his creepy butt off all the way to the bank.

Apr 17, 2012 6:04PM
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Mel Karmazin gets a nice stock option @ $0.19/share, and Stern gets a reality check, with a good old fashion kick in the nutz by the man.
Apr 18, 2012 9:52AM
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Howie hasnt been relevant since the mid 90's, thats why his station in New York was so willing to let him go, thats why before he went to sirius his syndication was WAYYYYYYY down, sorry, dont want to hear a 60 year old man describe naked lesbians, kinda creepy to be honest. How bout his movie where he made a huge point to show his love for Allison, but then dumps her for a model at his first chance.

Apr 17, 2012 3:55PM
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I had Sirius cancelled Sirius because this creep was on it.  His time has past and he needs to face it.  He is not a young man and at his actions are  creepy.

Put him right up there with child molesters, etc. when it comes to creepy.

Apr 17, 2012 3:46PM
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Talk about a guy with no talent getting over paid for doing nothing more than talking dirty on air.
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howard stern is poison.  i seem to recall seeing him on t.v..  i think his radio show was also broadcast over t.v. for a while.  but watching 1/2 a show, was more than enough for me.

maybe he was popular for some new jerk-ians.    but the rest of the country has better things to do than to waste time and money on stern's trash.
Apr 17, 2012 6:01PM
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Ole Grumbler, if you don't like what Stern has to say, don't subscribe or listen to his show!  You're a hipocrit!  It's called free speech for a reason.  Go listen to gospel pal!
Apr 17, 2012 6:48PM
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Most people who posted here are fools.  First, Howard is the best Radio entertainer ever PERIOD!  He singlehandedly saved Sirius from extinction then built them up so they beat and took over XM.  He should be paid for all the subscribers because Sirius would not have 1 XM subscriber without him.  He is the sole reason that Sirius survived and grew to crush XM.
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