Sirius Settles Shareholder Suit
March 14, 2006 at 11:05 AM (PT)
SIRIUS SATELLITE RADIO's annual 10K filing, filed MONDAY (3/13), notes that the company has settled a class action suit by shareholders over the company allegedly issuing "materially false and misleading statements and press releases concerning when our service would be commercially available, which caused the market price of our common stock to be artificially inflated." The settlement in STERNBECK v. SIRIUS SATELLITE RADIO, INC. (originally filed in SEPTEMBER 2001) was reached in JANUARY 2006 for $8 million cash, paid by the company's insurer.
In the same item, SIRIUS repeats its response to the lawsuit by CBS RADIO against it, HOWARD STERN, and DON BUCHWALD that it does "not believe that the allegations regarding us in the complaint have merit, and we intend to defend this suit vigorously."