Earlier this month, Howard Stern sued Sirius XM, and now a U.S. district judge ruled that that the satellite radio company must face a class action suit.
The class action suit claims that Sirius XM abused its monopoly power by raising prices almost 30 percent. The price hikes included pass-through royalty fees and also usage fees for the Internet and multiple radios.
The suit was originally filed in 2009 by subscribers, but the Manhattan court ruled this week that the case may proceed as a class action. The complaint asks for unspecified damages.
The court also ruled in Sirius XM’s favor: it dismissed claims filed under 20 state consumer protection laws, according to Bloomberg.
Sirius XM said “The surviving claims in this suit — that the Sirius-XM merger lessened competition or led to a monopoly — are matters that have already been passed upon by the United States Department of Justice and the Federal Communications Commission,” said a spokesman, Bloomberg reported. “With new competitors emerging almost daily, we continue to believe these claims are without merit and intend to vigorously defend this matter,” added the spokesman.
Art via Satellite Radio Playground