Sirius XM Case Turned Down By New York Judge

August 09, 2011

Bloomberg reported that a federal judge turned down the settlement of a lawsuit by Sirius XM Radio (NASDAQ:SIRI) subscribers who alleged that the satellite radio broadcaster broke the law when it increased the prices after merging with its only rival.A judge in Manhattan reversed the decision on the accord after the subscribers argued during a hearing today that the agreement gives them too little and too much.A Sirius XM subscriber sued the company citing, "Since the merger, Sirius XM has abused its monopoly power by increasing prices above competitive levels, breaching subscriber contracts and making false and misleading statements to subscribers and the public" and that his monthly rate jumped 40% to $27.88 after the merger."Sirius XM Radio (NASDAQ:SIRI) has a potential upside of 39.8% based on a current price of $1.73 and an average consensus analyst price target of $2.42.