Report: Howard Stern Sues SiriusXM Over Stock Bonuses
March 23, 2011 at 4:39 AM (PT)
HOWARD STERN's production company and manager are suing SIRIUSXM Radio asserting that STERN never received promised stock awards from the satcaster, TMZ.COM reports. The suit, filed in NEW YORK, seeks unspecified damages.
The suit alleges that SIRIUS promised STERN that he would receive a share "in any success that the company achieved" should he sign with it. Stock bonuses were to be based on the number of subscribers, which ranged from 3.7 million in 2006 to 12.1 million in 2010. But once it absorbed XM and built the subscriber base up to 20 million, SIRIUS apparently decided that HOWARD had been paid enough.
SIRIUSXM issued a response late WEDNESDAY, saying, "SIRIUSXM just signed a contract through 2015 with HOWARD STERN, and he is a valued part of our company. We were thus surprised and disappointed by the subsequent legal action initiated by his production company and agent. We have met all of our obligations under the terms of our 2004 agreement with HOWARD, his agent and production company."