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Howard Stern Appeals Ruling in Sirius Lawsuit

Shock jock ready to return to court

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Howard Stern Appeals Ruling in Sirius Lawsuit
[ Business]

Howard Stern isn’t about to take the dismissal of his lawsuit against Sirius XM lying down.

Judge Barbara Kapnick recently crushed Stern’s dream of a payout from his employer, a company he claims owes him millions of dollars from the stock options stipulated in his contact. The judge, apparently, felt that Stern had already been made whole, and dismissed the case without prejudice. Unhappy with her decision, the shock jock and his team of attorneys have decided to revisit the ruling in hopes of acquiring what they feel belongs to Stern.

The trouble surrounding the payout resulted from a merger between Sirius and XM back in 2008. The monies owed Stern were to be paid if the “Private Parts” author helped the satellite radio station boost the number of subscriptions. According to Stern, he did just that, though the numbers didn’t reach their target until after the stations’ subscriber base came together. That, as you can see, is where things started to get a little tricky.

According to Kapnick, some of the language in the contract was problematic due to the merger. In her eyes, Stern has already been paid everything Sirius XM owes him. He, of course, begs to differ, which is why the case may return to the courts should Stern’s appeal go through.

Stern is asking Appellate Division of the New York Supreme Court to review the case. The pre-argument files with the courts contains the following text:

“[Judge Kapnick] misinterpreted the parties’ contract and granted summary judgment for defendant before there was any discovery taken in the action. Reversal is warranted because, among other things, the parties’ contract is clear on its face that plaintiffs are entitled to the relief they seek or is, at a minimum, ambiguous.

Howard Stern Appeals Ruling in Sirius Lawsuit


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  • Renaldo

    What is this, 1998? Who cares about Howard Stern.

  • lalex

    I think if you had $300MM on the line, you would care very much.

  • http://www.LAokay.com Steve G

    I think the merger was ill timed on Sirius’s part. They didn’t allow Howard Stern to hit his numbers before the merger, and the merger brought in enough subscribers to meet Howard’s goal. However he didn’t necessarily bring in those additional subscribers, the merger did. As such I think a settlement is in order which should represent the original deal, just discounted based on how many subscribers he did bring in up to the point of the merger.

  • http://newbizshop.com Derek

    I take it he is broke and miss managed his money? Meanwhile, the middle class people are struggling to pay there bills month to month.

    I guess he can’t live off a few million dollars. Sell your house Howard.

    • Daved

      Derek is a bonafide loser. Do they not have google where you live in the woods?

    • Renaldo

      Who are these “broke” people who are struggling to pay their bills? Standards of living have never been higher. Are you in an alternate universe?

  • http://geneaasen.com Gene

    For me the point here is that there is a mechanism in place to try and determine what is the right thing. Take Howard Stern and Joe Middle Class who is struggling out of it. The point is to determine the fair application of the current law so that everyone (rich, poor, smart or stupid) can count on fair treatment by the judicial system if it affects them.

  • Brian

    Howard is the reason the merger happened in the first place. When he started Sirius only had 600,000 customers and XM was the dominant force in the marketplace with talks of them taking over Sirius. He came along and bumped up the subscriber bases by multi millions per year forcing XM to sell and merge to Sirius. The contract doesnt state how he has to reach his subscriber goal but rather if he reaches a certain amount of subscribers, bonuses kick in. He reached those subscriber goals when the merger happened. He deserves payment. He is standing up for what is right and owed. Any other person wouldnt have the money to fight a big corporation like that, he does. If it was me and I was owed money that I earned….of course I would fight for it if I could afford it, who wouldn’t?

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