New York, NY: A settlement has been reached in the class action against Sirius XM Satellite Radio (NASDAQ:SIRI). The terms of the settlement include a price freeze for class members until December 31, 2011. Another aspect of the settlement is a no-charge re-activation fee for some 4 million people who dropped their subscriptions.
The suit, brought by a subscriber in 2009, alleged Sirius XM had deceptively raised prices by adding music royalty fees and eliminating free Internet streaming. The suit further claimed that the price increase showed that the Sirius and XM merger in 2008 created a monopoly that violates the Sherman Act.
