SiriusXM Faces Ongoing 'Deceptive' Class Action Lawsuit

US District Judge Michael H. Simon last week issued a 17-page ruling denying SiriusXM’s motion to dismiss a class action lawsuit accusing the satellite broadcaster of deceptive pricing. The suit claims SiriusXM hid a 21.4% “US Music Royalty Fee” from subscribers, violating Oregon’s Unlawful Trade Practices Act and breaching good faith and fair dealing.

Four Oregon residents allege SiriusXM advertised music plans without disclosing the additional royalty fee, revealing it only in fine print or at the end of the subscription process, if at all. They claim customer service misrepresented the fee as “government-mandated” or “required by law,” despite SiriusXM retaining revenue beyond royalty payments.

Judge Simon rejected SiriusXM’s argument that the lawsuit was filed too late, stating that when subscribers should have discovered the deception is a jury question. He also found the plaintiffs’ claims of deceptive conduct plausible under Oregon law and allowed the breach of good faith claim to proceed, noting the fee’s handling may have violated reasonable subscriber expectations.

SiriusXM argued recent marketing adjustments rendered the case moot, but Simon disagreed, stating, “A defendant’s voluntary cessation of a challenged practice does not deprive a federal court of its power to determine the legality of the practice.”

The ruling greenlights discovery in the proposed class action, which seeks restitution, punitive damages, and an injunction to halt deceptive practices. The outcome could reshape SiriusXM’s pricing transparency nationwide.