Another Sirius XM Lawsuit Seeks To Push Out Mel Karmazin
May 20, 2011 at 4:03 AM (PT)
Earlier this week (NET NEWS 5/17), ALL ACCESS reported that as part of a settlement with subscriber CARL BLESSING, SIRIUS XM said they would hold the line on subscription rates. The company said in an SEC filing that through DECEMBER 31st, it wouldn't raise the price of its basic satellite radio service, other programming packages or its Internet streaming services. SIRIUS XM also said existing subscribers will be able to renew their subscription plans at current rates. BLESSING sued SIRIUS XM in 2009, over what he claimed was a "deceptive effort to raise subscriber prices."
Now another suit is being filed against the company. SIRIUS BUZZ reports the "allegations surrounding the merger and the company's pricing plans seems to be the center of attention. The latest is a lawsuit brought by MICHAEL SHENK against the Board of Directors and SIRIUS XM SATELLITE RADIO."
In this suit, SHENK seeks to have CEO Mel Karmazin ousted, and seeks an end to alleged "breaches of fiduciary duties, gross mismanagement, waste of corporate assets, and unjust enrichment."