Save Sirius Coalition Having Trouble Saving Sirius
by John Paczkowski
Posted on December 11, 2008 at 9:01 AM PT
If the Save Sirius coalition hopes to fulfill its eponymous mandate, it may have to do so by other than legal means. Because its lawsuit against Sirius XM (SIRI) has been dismissed. Filed in early November, the suit accused the satellite broadcaster and its leadership of severely damaging shareholder value in violation of their fiduciary duties. Among the group’s gripes against Sirius: “locking shareholders into the longest merger delay in history; preventing the corporation from seeking alternatives or potential suitors; failing to commercially introduce interoperable radios; insisting on going forward with the merger at any and all costs; and consummating the merger, issuing 300 million shares to the financiers of XM’s debt to be sold short on the open market.”
Searing claims. Unfortunately for Save Sirius and its founder Michael Hartleib, they’re far too lacking in specificity for a court to take them seriously. “The majority of Mr. Hartleib’s arguments to show the futility of making a demand on the current Sirius board are based on generalized, not specific allegations,” Judge Cormac J. Carney wrote in an order dismissing the suit. “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.”
Hartleib, for his part, was unfazed by the dismissal. “The case is not over at all,” he said. “We have twenty days to resubmit, and we shall.”
As of this writing SIRI was trading at $.15, about double its 52-week low.
Comments
I feel that save serius is bunk! although there should be some people out their that would think of saving seriusxm because it is a good product and the CEO and board of directors need to be fired because the way this merger went through was not right also their pay is not worth what they recieve for dismanteling a good company.I know that the FCC delayed the merger along with the group save serius, the Feds should take a look at what happened to see if any Laws were broken. also NO on added shares and NO on Reverse split and NO vote on board of directors I voted my 23,800 with an average 3.01 Purchase price that is worth 0.1562 at this time.
Posted by Leroy Clifton at December 11th, 2008 at 9:44 amThis is poking “award winning” fun? Could have fooled me. It looks more like rehash of three-day-old wire release.
Posted by Michael Mack at December 11th, 2008 at 10:26 amBetter late than never, Michael.
I just caught wind of the dismissal and, according to Google News, it’s been covered by just one or two other outlets.
Posted by John Paczkowski at December 11th, 2008 at 10:43 am“As of this writing SIRI was trading at $.15, nearly double its 52-week low.”
that is a hilarious misrepresentation of sirius stock price performance.
The 52 week high was 3.89
Posted by trevor jordet at December 12th, 2008 at 6:43 pmI am new to stock buying. I have however a thought on Sirius..Here You have a Company that is now (basically) a monopoly. They have 19 Million subscribers (growing), They have just secured a contract with major league Baseball. Car Companies are installing SIRIUS at the Factory……
Posted by ed smith at December 16th, 2008 at 1:00 pmI believe it is a pretty good bet that SIRIUS will not dissolve. It might take awhile for it to get back on its Feet, but I believe that they (and future unknown Companies) are the future…SIRIUS is the first stock that I am buying, and I have faith that it will rebound.
I think you’re mistaking “52 week low” for 52 week high, Trevor.
Posted by John Paczkowski at December 17th, 2008 at 3:17 pm