Howard Stern has sued Sirius XM stating that the satellite radio company failed to pay him stock awards.
Stern and his agent Don Buchwald claim the shock jock was to receive stock benefits linked to growth in new subscribers. But while Stern did receive two payments including one for 34.4 million shares in 2006, Sirius XM failed to continue the payments after 2007, the suit claimed, according to Reuters.
You may remember that Stern signed a 5-year contract with Sirius Satellite Radio in 2004 for $500 million. He also renewed his contract with Sirius XM in December for another 5 years.
In a statement Sirius XM said it followed the terms of the 2004 deal, and noted that Stern just renewed his contract through 2015. Sirius XM said it was surprised and disappointed by the legal action, said The New York Times.
The suit was filed in New York State Supreme Court in Manhattan by Stern’s production company, One Twelve, and Buchwald.
More fodder for Stern’s show so he can rant against his employer?
Source: Reuters via The New York Times