Sirius XM (NASDAQ:SIRI) has been in the news a lot lately with regard to lawsuits. There is a pending lawsuit brought by Howard Stern, his agent, and his production company as well as a suit that has received authorization to proceed as a Class Action. While those suits have put a bit of a damper on the company, another suit has finally been settled for what amounts to a small amount of money.
Years back XM satellite Radio introduced a wearable device called the Inno. The Inno allowed users to take their satellite radio on the go, record songs, and record blocks of songs that could later be edited. The Inno was first introduced as the “iPod Killer” but promotion of the Inno quickly ceased as the company was hit with lawsuits from the record labels because of the features the device had. It was just announced that the lawsuit issues surrounding the Inno have finally been settled with the few remaining independent labels that until now had not budged.
Merlin, the company representing the independent labels came to terms with XM for what amounts to $3.6 million. Certainly getting this lawsuit behind them is good news for Sirius XM. The modest settlement will not impact the bottom line in any material way, and this is one suit that the company, and investors can put behind them.
Position – Long Sirius XM Radio