Howard Stern's Agent Sues Sirius XM Radio Over Stock
Radio "shock jock" Howard Stern and his agent are suing Sirius XM Radio Inc. alleging that his client was promised performance-based stock awards the satellite radio company refused to pay.
"Stern enabled Sirius to surpass its internal subscriber targets by more than 2 million subscribers in 2006 and in 2007," the suit filed in New York State Supreme Court alleges.
Howard Stern sues Sirius for subscriber stock bonuses
LOS ANGELES (AP) — Howard Stern and his agent are suing Sirius XM Radio for failing to pay stock awards they say are due for helping it exceed its subscriber growth targets and go from a distant second to the dominant satellite radio service in the country.
Sirius had around 230,000 subscribers to XM’s 1.3 million at the end of 2003. As of the end of December, it had 20.2 million.
Buchwald and Stern were told last year by Sirius XM’s general counsel, Richard Basch, that the bonus stock awards were not granted because the company did not include XM’s subscriber base toward the total number of Sirius subscribers.
“When Sirius needed Stern, it promised him a share in any success that the company achieved,” the suit said. “But now that Sirius has conquered its chief competitor and acquired more than 20 million subscribers, it has reneged on its commitment to Stern, unilaterally deciding that it has paid him enough.”
Howard Stern sues SiriusXM radio company over unpaid fees; Shock jock could get milli
Howard Stern is going after his bosses again, accusing SiriusXM of treating the King of All Media like a peon.
Stern's production company, One Twelve Inc., and his agent, Don Buchwald, Tuesday sued the satellite radio company, charging that it reneged on promised payouts.
The suit, filed in Manhattan Supreme Court, says SiriusXM stiffed Stern on performance-based incentives after he delivered millions more subscribers to satellite radio than ever expected.
"Now that Stern has put the company on the map, brought in millions of subscribers and helped it conquer its chief rival, Sirius has unilaterally decided that Stern has been paid enough," the suit says.
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Stern alleges the subscriber estimates on which his stock bonuses were to be based ranged from 3.7 million in 2006 to 12.1 million in 2010. According to Stern, he actually blew those estimates out of the water and Sirius today has a subscriber base of more than 20 million subscribers.
Howard Stern Sues Sirius XM
The suit claims that Stern's signing helped Sirius exceed its subscriber targets by at least 2 million subscribers in each year of the contract, triggering a new stock award each time. It also said Stern put Sirius in a position to complete its 2008 acquisition of XM Satellite Radio Inc., which had also courted Stern years earlier.
Howard Stern sues Sirius XM over stock
The complaint said that Stern helped the company surpass its targets by more than 2 million subscribers in 2006 and 2007. After Sirius' merger with XM in 2008, Sirius XM again beat its targets, as well as in 2009 and 2010, according to the filing.
"Now that Sirius has conquered its chief competitor and acquired more than 20 million subscribers, it has reneged on its commitment to Stern, unilaterally deciding that it has paid him enough," the complaint said.
In response, Sirius XM said it had "met all of our obligations under the terms of our 2004 agreement with Howard, his agent and production company." It added it was "surprised and disappointed" by the legal action.