Sirius XM Radio Subscribers Urge Judge to Reject Antitrust Settlement

Quote: Sirius XM Radio Inc. (SIRI) subscribers who claimed the satellite radio broadcaster broke the law when it raised prices after merging with its only rival. Manhattan made no decision today on approving the accord after subscribers argued at a hearing that the agreement gives them too little and the lawyers too much. Florida sued Sirius XM in 2009, claiming it violated federal antitrust and state consumer- protection laws when it raised prices and levied a music royalty fee after Sirius Satellite Radio and XM Satellite Radio completed their merger in 2008. Blessing said in his complaint his monthly rate jumped 40 percent to $27.88 after the merger. South Carolina who commutes 180 miles a day for work, told the judge. “I have no alternative. Combining Sirius and XM created a firm with monopoly power in rural South Carolina.” Justice Department. Sirius XM said the increases were imposed to cover higher costs. Baer in March let the federal antitrust claim proceed as a class-action, or group, lawsuit, on behalf of Sirius XM subscribers. He denied class-action status on the state-law claims. Preliminary Approval The class and Sirius XM reached a pretrial settlement, and Baer gave preliminary approval to the agreement in May. “The settlement is appropriately scaled to the scope of the case,” John Marjoras, a lawyer representing Sirius, told the judge today. “There were hard-fought negotiations. We fully expected to go to trial.” Internet access, as well as the music royalty fee, will remain at current levels through the end of the year. Subscribers who canceled can reconnect without paying a fee. Those whose plans expire after Dec. 31 can renew before that time at current rates. Subscribers will get no cash. “The expectation was that the price would increase $2 a month” after a cap imposed by the FCC expired in July, Joseph Sabella, a lawyer representing the class, told the ...
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