Facts

Plaintiff Philip Alvarez filed a lawsuit against defendant Sirius XM for fraud, misrepresentation and violation of the Unfair Competition Law and California Consumers Legal Remedies Act in relation to their lifetime subscriptions of Sirius XM's satellite radio service.

PLAINTIFF'S CONTENTIONS: Plaintiffs contended that Sirius XM advertised and sold its lifetime subscriptions to consumers by leading consumers to believe that such lifetime subscriptions were for the lifetime of the consumer. Plaintiffs contended that when they tried to transfer their lifetime subscriptions from one receiver to another or from one automobile to another, Sirius XM clarified that lifetime referred to the lifetime of the receiver or automobile. Plaintiff contended that defendant committed fraudulent and negligent and misrepresentation. Plaintiff contended that defendant's fraudulent actions violated the Unfair Competition Law and California Consumers Legal Remedies Act.

DEFENDANT'S CONTENTIONS: Defendant denied the contentions.

Result

The parties' settlement agreement received preliminary approval from the court. Under the agreement, class members are to receive lifetime subscriptions that will actually last for their lifetime. Further, member will be able to transfer their lifetime subscriptions to an unlimited number of different devices for $35 per transfer. If the class member no longer wants to hold an active lifetime subscription, they have the option for reactivating the lifetime subscription at no charge or claim $100 in cash. Overall, the settlement benefits were worth approximately $96.4 million.