Shares rise 3% in early trading
In an SEC filing, the company said a New York State Supreme Court judge granted a motion for summary judgment and threw out the breach of contract case brought by One Twelve, Stern’s production company, and Don Buchwald, the shock jock’s agent. Sirius shares are up more than 3% in early trading at $2.24.
In March 2011, One Twelve and Buchwald alleged that Sirius failed to honor its obligations under the performance-based compensation provisions of an agreement from 2004.
Sirius said “the court found the agreement unambiguous and that we had complied with all our obligations under the agreement.”
Stern shocked the broadcasting world and helped put Sirius on the map when he agreed in 2004 to jump from CBS radio to satellite with his highly popular morning show. He reportedly signed a five-year contract worth $500 million starting in 2006 and re-upped in 2010 for another five years.
His lawsuit claimed that Sirius had promised him stock compensation tied to subscriber growth.
“When Sirius desperately needed Stern to make its business viable, it induced him to move to Sirius by offering him a chance to share in the success of the company. Now that Stern has put the company on the map, brought in millions of subscribers, and helped it conquer its chief rival, Sirius has unilaterally decided that Stern has been paid enough,” it said.