Save Sirius Coalition Having Trouble Saving Sirius
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.