SIRIUS XM Radio Inc. (NASDAQ: SIRI) appears to have won at least one argument in the efforts of and around Howard Stern. Today’s news may just feel like another round of a boxing rematch, but it may be one more issue in a long battle which could come back up. It has been no secret that Stern was incredibly responsible for much of the initial growth of the satellite radio station at the launch. It also been no secret that Stern has at least in some part pushed back in recent years. At one point there was even a risk that Stern might not be part of Team SIRIUS going forward. A filing from the Securities & Exchange Commission shows that Sirius may now have at least one feather in its cap as far as any argument with Howard Stern. The filing is as follows:
Yesterday, New York State Supreme Court Judge Barbara Kapnick granted our motion for summary judgment and dismissed with prejudice the case brought against us by One Twelve, Inc., Howard Stern’s production company, and Don Buchwald, Stern’s agent.
In March 2011, One Twelve and Buchwald commenced an action against us in the Supreme Court of the State of New York, County of New York. The action alleged that we failed to honor our obligations under the performance-based compensation provisions of our prior agreement dated October 2004 with One Twelve and Buchwald, as agent; One Twelve and Buchwald each asserted a claim of breach of contract. The Court found the agreement unambiguous and that we had complied with all our obligations under the agreement.
The news today has so far been worth a 3% gain to $2.24 for Sirius shares.
Jon C. Ogg