Sirius investors applaud Howard Stern's legal loss
A judge tossed the shock jock's lawsuit against the satellite radio company this week.
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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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.
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.
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.
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.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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