Sirius Shareholder Lawsuit Over… at Least for Now

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It seems that the revolt by Sirius XM Radio shareholders has been quelled, at least for the time being. A federal judge has dismissed claims by angered investors based on rather flimsy evidence of wrongdoing. In a decision that surfaced on Monday, US District Court judge Cormack J. Carney opined that although the complaint identifies alleged fraud and wrongdoing committed by Defendants, it does not state how each specific Sirius director was responsible for those actions.

Carney also pointed out that the majority of the board was not empanelled at the time of the alleged wrongdoing. As such, such generalized allegations are even more ineffective in situations like this one. This ruling tosses the complaint, although Carney allowed plaintiff Michael Hartleib twenty days to amend the motion. “The case is not over at all,” Hartleib commented.

Sirius XM Radio is currently struggling, with shares grovelling at just 15 cents, a seriously-depressed valuation. This news has come as a significant blow to shareholders who were hoping for a more positive outcome. However, it’s worth noting that the case is not over yet, and there is still a possibility that the motion could be amended and the lawsuit continued.

The lawsuit was filed by Sirius XM Radio shareholders against the company’s directors, alleging that the directors had breached their fiduciary duties by approving a deal with Liberty Media Corporation that they claim unfairly benefited Liberty Media at the expense of Sirius XM shareholders. The plaintiffs had argued that the deal was structured in a way that made it impossible for Sirius XM to recover from the financial crisis, which had hit the company hard.

However, Judge Carney dismissed the case, stating that the plaintiffs had failed to provide sufficient evidence to prove their claims. The judge also noted that the majority of the board was not empanelled at the time of the alleged wrongdoing, which made it difficult for the plaintiffs to hold the directors responsible for the alleged breach of fiduciary duties.

The ruling is a significant setback for the Sirius XM shareholders who had hoped to recover some of their losses from the company. However, it’s worth noting that the case is not over yet, and the plaintiffs still have an opportunity to amend their motion and continue the lawsuit. The shareholders may also explore other legal options to hold the directors responsible for the alleged breach of fiduciary duties.

In the meantime, Sirius XM Radio will need to focus on turning its fortunes around. The company has been struggling in recent years, with shares falling to a seriously-depressed valuation. The company will need to take steps to improve its financial performance and restore investor confidence.

In conclusion, the dismissal of the lawsuit by a federal judge is a significant blow to Sirius XM Radio shareholders. However, the case is not over yet, and the plaintiffs still have an opportunity to amend their motion and continue the lawsuit. Sirius XM Radio will need to focus on turning its fortunes around and restoring investor confidence in the company.