Radio personality Howard Stern and his agent is suing Sirius XM Radio Inc. (NASDAQ:SIRI) for failing to pay stock awards to them. Stern claims to have helped Sirius XM surpass subscriber growth targets.
Stern’s production company One Twelve Inc. and his agent Don Buchwald said that Sirius made an initial bonus stock award after Stern started in January 2006, but failed to do it again over the next four years. The lawsuit was filed in the Supreme Court of the State of New York.
Stern helped Sirius exceed subscriber targets by at least 2 million in each year of the contract. Stern believes that this should have triggered a stock award each time. Sirius had 230,000 subscribers at the end of 2003 when XM had 1.3 million. At the end of this December, the combined company had 20.2 million.
“When Sirius needed Stern, it promised him a share in any success that the company achieved,” stated the lawsuit. “But now that Sirius has conquered its chief competitor and acquired more than 20 million subscribers, it has reneged on its commitment to Stern, unilaterally deciding that it has paid him enough.”