Howard Stern has struck out in his attempt to revive a $300 million lawsuit against Sirius XM for allegedly cheating him out of promised stock bonuses.
On Thursday, a New York appeals court refused to overrule a New York judge's ruling in April, 2012 that Stern deserved additional stock compensation if Sirius exceeded certain subscriber target projection. Sirius had exceeded the targets, but only when customers directly gathered through the merger with XM were counted.
According to a ruling by New York's First Appellate Division, "We agree with the motion court that plaintiffs are not entitled to additional performance-based compensation under the unambiguous agreement between plaintiffs and defendant's predecessor, Sirius Satellite Radio Inc. Looking solely to the plain language used by the parties within the four corners of the agreement...the disputed term 'Sirius subscribers,' by which plaintiffs' performance-based compensation was measured, did not include subscribers to XM Radio, a wholly owned subsidiary which defendant acquired by merger, even though the merger had been anticipated within the agreement."
Stern believed himself to be Sirius' partner and that his participation in Sirius' success put the company in a position to acquire XM.
But Stern has failed a second time in winning a legal argument.
- Company Legal & Law Matters
- Howard Stern
- Sirius XM