Sirius Satellite Radio Inc. disclosed in a recent SEC filing that a hearing in the arbitration with U.S. Electronics is scheduled to start next month.
U.S. Electronics, which has most recently opposed the Sirius-XM merger, filed suit against Sirius last year seeking approximately $48 million in damages.
According to the most recent SEC filing, Sirius disclosed that U.S. Electronics is now seeking between $75 million and $110 million in damages.
The former distributor and manufacturer alleges that Sirius breached their contract; failed to pay monies owed; tortiously interfered with U.S. Electronics' relationships with retailers and manufacturers; withheld information relating to the FCC's inquiring into Sirius radios that include FM modulators... and otherwise acted in bad faith.
Sirius believes that a substantial portion of the damages sought by U.S. Electronics are barred by the limitation of liability provisions contained in their contract.
The hearing in this arbitration is scheduled to begin in March 2008, according to the filing.
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I think regardless of the facts it's a total dickhead move for a former business partner to sue Sirius in this manner.
When a company tells me that they are likely not liable for a substantial portion, then I know that they are on the hook for something, and it ain't chump change. Sirius, in my OPINION, is looking to settle and I hope DEI takes them through arbitration and wins HUGE.
DEI - Go get 'em and get 'em good!!!
I think regardless of the facts it's a total dickhead move for a former business partner to sue Sirius in this manner.
this is without a doubt the dumbest thing I have ever seen written here.
Being a partner dies not say that one did not screw the other.
It makes me think about Dish and Star Band.
At a loss for words -
Interesting that you say "regardless of the facts" - it seems that you believe that Sirius can no whatever it wants to whomever it wants regardless of what the parties have agreed to in their contract. I doubt DEI's first action was to initiate this action. My guess, knowing a little about the law, is that DEI said something to the effect of, "Hey, Sirius, we have a problem. You owe us XXX, or your need to do YYY." "To which Sirius said no we don't or no we won't."
What should DEI do? Walk away from it? Forget about it?
Welcome to the world of business. I'm sure Sirius will try to negotiate its way out of the amount claimed in order to preserve capital, just like they did with the delay of the launch of the satellite.
I am really enjoying the unwinding of this company and its only competitor. I missed out on Enron and feel like I am watching the sequel. Pass the popcorn.
DEI (Directed Electronics) has no part of this suit. This case deals with Xact ( US Electronics) Get your info right people or DO NOT POST.
Pardon me. You are exactly right. Please substitute US Electronics in every spot that DEI is mentioned.
Once again, my apologies.