Sirius Discloses Legal Spat With Receiver Manufacturer
March 2, 2007 at 5:49 AM (PT)
SIRIUS SATELLITE RADIO has disclosed in its annual report filed with the SEC that it is involved in an arbitration proceeding with a receiver manufaturer that is seeking $48 million in damages from the company.
U.S. ELECTRONICS INC., which makes SIRIUS' XACT radios, is claiming that SIRIUS breached its contract by failing to pay U.S. money owed under their contract and also interfered with U.S.'s other relationships with manufacturers and retailers. In its filing, SIRIUS says that it believes that about $41 million of the damages are barred by liability limitation provisions of the companies' contract and that it is "vigorously defending this action."