Judge Allows Shareholder Suit Against Sirius XM To Continue
November 22, 2010 at 4:55 AM (PT)
The shareholder suit against SIRIUS XM RADIO will proceed with the partial denial by U.S. District Judge HAROLD BAER of the company's motion to dismiss the case brought over the increase in subscription price based on additional music royalty obligations.
BAER ruled on NOVEMBER 17th that the 11 plaintiffs named on MAY 3rd were timely joined and have stated claims under NEW YORK and CALIFORNIA law and have provided sufficient notice of damages.
He also dismissed some of the plaintiffs' claims under the CALIFORNIA civil code and claims for breach of contract and breach of the covenant of good faith and fair dealing, and denied the part of SIRIUS XM's motion to dismiss that challenges the plaintiffs' standing to bring certain state law claims, but said that the issue may be revisited after a decision on the class certification motion.