Sirius XM Faces Shareholder Litigation

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Sirius XM Faces Shareholder Litigation

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Sirius XM is facing litigation in a California federal court filed on behalf of unhappy shareholders.

The so-called derivative suit was recently filed in U.S. District Court, Central District of California. The document alleges Sirius XM management of violations of federal RICO racketeering laws, breach of fiduciary duty and other laws, according to a statement from the lead plaintiff.

Also, the suit seeks to prevent Sirius XM management from pursuing a proposal that would allow the satellite radio company to conduct a reverse stock split of its shares. Also, "we are working to gain control of our company by seeking to remove current members of the board as well as top executive Mel Karmazin," said Michael Hartleib, the individual pursuing the litigation on behalf of the group called "Save Sirius."

In response, Patrick Reilly, senior vice president of communications at Sirius XM, said in a statement that the litigation "is the latest in a string of court filings by this plaintiff, all of which have been dismissed. We consider the latest filing baseless and will challenge it vigorously."
 
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