Sirius XM Class Action Says Lifetime Subscriptions Not Honored

A satellite radio subscriber has filed a putative class action lawsuit against Sirius XM Radio, claiming the company fails to honor “lifetime subscription” offers.

Filed in the U.S. District Court for the Central District of California on Sept. 12, plaintiff Paul Wright alleges Sirius XM led consumers to believe that its lifetime subscriptions were for the lifetime of the consumer and not the life of the receiver or automobile.

But when subscribers try to transfer the subscription from one receiver to another or from one car to another, the company said “lifetime” referred not to the lifetime of the purchasing consumer, but to the lifetime of the receiver or automobile, the lawsuit reads.

The complaint argues that when XM Satellite Radio Holding and Sirius Satellite Radio merged in July 2008, the combined entity “assumed and acquired all duties, obligations and liabilities of its predecessors.”

Wright says he bought a lifetime subscription from Sirius in Dec. 2006 for $400. No service agreement or other written agreement was provided at the time, he claims.

More importantly, he bought the subscription over the phone, and says that the salesperson didn’t qualify it in any way, leading him to assume that the subscription was for his lifetime.

“At the time of purchase of his lifetime subscription, no verbal or written notice was provided to Plaintiff that the lifetime subscription was subject to or conditioned upon a service agreement, other written agreement, or other terms to be presented at a later date,” the 17-page complaint notes.

Specifically, Wright took “lifetime” to mean his lifetime and says at the time of purchase he received no notice that meant anything other than that or that the subscription was limited to the original device or subject to a limited number of device transfers.

Come Jan. 2016, Wright says he tried to transfer his lifetime subscription to a new Stiletto portable receiver after his old Stiletto quit working but Sirius XM failed to honor the transfer, prompting him to file the proposed class action lawsuit.

“Defendant systematically advertised and sold its lifetime subscriptions to consumers by leading consumers to believe that such lifetime subscriptions were for the lifetime of the consumer. However, when consumers have tried to transfer their lifetime subscriptions from one receiver to another or from one automobile to another, defendant has taken the position that the ‘lifetime’ referred to is not the lifetime of the purchasing consumer, but the lifetime of the receiver or automobile,” Wright told a federal court earlier this week.

The complaint accuses Sirius XM of breach of express contract, breach of implied contract, fraudulent misrepresentation and violations of California laws governing unfair competition and consumer protections.

This is not the first time Sirius XM has faced a class action lawsuit over their lifetime subscription plans.

In 2012, a California couple sued the satellite radio provider claiming the company breached it contract for its “XM Everything-Lifetime NavTraffic” and “Lifetime XM Radio Service” subscription offers by failing to provide services.

That case was dismissed in April 2013 with prejudice as to the named plaintiffs but without prejudice as to any and all Class Members of the putative Class within the complaint.

Wright is seeking certification for a Class of customers, potentially tens of thousands, who purchased a lifetime subscription venturing on the continued existence of the satellite provider.

“Purchasers of the lifetime subscriptions took a chance and paid large upfront lifetime subscription fees to Defendant with no guarantee that Defendant would survive as an ongoing business,” the complaint explains. “But in the hope that if Defendant did survive, their lifetime subscription purchase would pay off over time.”

Wright is represented by Tina Wolfson of Ahdoot & Wolfson PC and Cornelius P. Dukelow of Abington Cole + Ellery.

The Sirius XM Lifetime Subscription Class Action Lawsuit is Paul Wright v. Sirius XM Radio Inc., Case No. 8:16-cv-1688 in the U.S. District Court for the Central District of California, Southern Division.

UPDATE: On June 1, 2017, the Sirius XM Lifetime Subscription class action lawsuit was dismissed.  Top Class Actions will let our viewers know if any similar lawsuits are filed!