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This excerpt taken from the SIRI 10-K filed Mar 13, 2006. In re: Sirius Satellite Radio Securities Litigation, No. 01-CV-10863, pending in the United States District Court for the Southern District of New York. This action was brought on behalf of all persons who acquired our common stock on the open market between February 16, 2000 and April 2,
2001. The complaint alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleged, among other things, that the defendants issued materially false and misleading statements and press releases concerning when our service would be commercially available, which caused the market price of our common stock to be artificially inflated.
In January 2006, we and certain of our current and former executive officers who are also defendants agreed in principle to settle this action for $8 million in cash. Our insurer will fund the entire amount of the settlement payment. We do not anticipate incurring any additional significant expenses in connection with this action and we will not seek recovery of any unreimbursed defense costs previously incurred and paid by us. This agreement in principle is subject to F-32
SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES completion of a definitive settlement agreement and approval by the United States District Court for the Southern District of New York. On February 28, 2006, CBS Radio Inc. commenced a lawsuit in New York State Supreme Court against Howard Stern, Stern's production company, Stern's agent and us. The suit alleges, among other things, that Stern breached his former agreement with CBS Radio by reason of certain statements he made during the course of his show broadcast by CBS Radio. The complaint further alleges that we are liable for unjust enrichment, unfair competition, aiding and abetting fraud and tortiously interfering with the agreement between CBS Radio and Stern. The complaint seeks damages in an unspecified amount. We do not believe that the allegations regarding us in the complaint have merit, and we intend to defend this suit vigorously. In the ordinary course of business, we are a defendant in various lawsuits and arbitration proceedings, including actions filed by former employees, parties to contracts or leases and owners of patents, trademarks, copyrights or other intellectual property. None of these actions are, in our opinion, likely to have a material adverse effect on our business or financial results. |
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