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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