Judge: Sirius Radio Antitrust Suit May Go Forward

A lawsuit claiming antitrust violations by SiriusXM Radio Inc., the biggest U.S. satellite- radio broadcaster, may go forward as a class action, a federal judge ruled.

According to a story by Bob Van Voris and David Glovin at Bloomberg, U.S. District Judge Harold Baer in Manhattan allowed the antitrust claims to proceed while dismissing claims filed under 20 state consumer-protection laws. In a separate order Tuesday, Baer said the case may go forward on behalf of a nationwide group of SiriusXM subscribers.

In a complaint filed in 2009, the subscribers claimed that New York-based Sirius XM, the product of a 2008 merger between Sirius Satellite Radio Inc. and XM Satellite Holdings Inc., abused its monopoly power by illegally raising prices by almost 30 percent. The suit targets so-called music royalty fees that Sirius charges in addition to subscription fees.

Carl Blessing filed the lawsuit on behalf of himself and other subscribers. It seeks unspecified damages, which may be tripled under antitrust law.

In the ruling Tuesday, Baer certified a class of Sirius XM customers who since July 29, 2008, paid the music royalty fee, an increased monthly charge to activate more than one radio, or an Internet access fee.

Patrick Reilly, a SiriusXM spokesman, said in an e-mailed statement that the company was “heartened” by the portions of the ruling in its favor.

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