Sirius XM Customers Avoid Arbitration in Royalty Fee Lawsuit

Sirius XM Radio Inc. didn’t give customers sufficient notice of the arbitration provisions in its customer agreements to compel arbitration in a proposed class action alleging the company charged a deceptive royalty fee, a federal judge said.

“At no point does Sirius XM make clear to any user that the Customer Agreement includes an agreement to arbitrate,” Judge William H. Orrick of the US District Court for the Northern District of California said July 11.

Plaintiffs Denise Woods and Sherry Tapia alleged Sirius XM tricked buyers into paying more than 20% higher for its services than the company advertised. They ...