Howard Stern sues Sirius XM

March 23rd, 2011 - 9:52 pm ICT by Aishwarya Bhatt  

Los Angeles, Mar 23 (THAINDIAN NEWS) Howard Stern believes that Sirius XM has not treated him fairly and as such has sued them.

Stern’s agent and his company, One Twelve Inc, have sued Sirius XM Radio for going back on their promise to give Stern stocks that they promised him. The suit was filed at New York Superior Court and it claimed that in 2004 when the deal was signed, Sirius XM needed Stern more than Stern needed Sirius.

According to the court papers filed by the complainants, Sirius promised to give Stern stocks if the subscriber base of Sirius grows. The initial agreement was that the company should have 3.7 million subscribers by the end of 2006 and eventually end up with about 12.1 million subscribers by the end of 2010.

The suit claims that those targets have been exceeded. Sirius’ subscriber base was 20 million at the end of 2010 and was 6 million at the end of 2006.

The suit explained that Stern and his team did not press for Sirius to honor its side of the bargain because “Sirius was struggling or reportedly on the verge of bankruptcy.”

Sirius later issued a statement expressing disappointment at the legal action taking by Stern and his team. Sirius admitted that it has a contract with Stern until 2015.

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