Sirius XM Anti-Trust Case Settlement Approved by Judge

By Relmor Demitrius

Today closes the ill-fated and extremely weak case of Blessing vs. Sirius XM Radio (NASDAQ:SIRI).   A federal judge today ruled that the settlement agreement was legal and valid.  This matter is now closed.  The objection was heard and denied.   The judge had been waiting to approve the settlement, which is standard procedure in these cases, because of a third party objection to the settlement.  This fake outcry to protect the poor consumer from the big bad wolf was just that, crying wolf.  Justice prevails this time.  The lackluster outrage over a price increase and claiming anti-trust violations has now been put to bed.  

The original settlement was a huge win for Sirius XM, avoiding court and basically only surrendering what was already going to be offered anyway (a chance to lock in old rates before any price structure changes that may occur in 2012).  Sirius XM promised to keep current rates till the end of the year and to offer these rates to existing and past subscribers who cancelled during the period in question.  Everyone wins.  Sirius XM gets added revenue and subscribers who left come back again to their old prices, avoiding the increase.  

The judge stated in his comments that even if it had gone to trial, any anti-trust violations would have been difficult to prove.  Basically saying you’re lucky you got what you got.  I probably would have ruled against you anyway.   This was almost a non cash settlement, except Sirius XM agreed to cover the lawyer fees of 13 million dollars.

Objectors claimed it was a hollow victory because Sirius XM never stated anywhere they were raising prices.  With is indeed true.  They never have.  They will.  They are.  They hinted at it.  But nowhere does it state their intent to do this.

Disclosure:  Long SIRI