Fraud Class Action vs. SiriusXM Hits Impasse, Pending Ruling on Motion to Compel

The first “substantive” development in the false-advertising class action brought against SiriusXM by plaintiffs Ayana Stevenson, David Ambrose and Lisa Ramirez will be the court’s adjudication of SiriusXM’s July 24 motion to compel their claims to arbitration (see 2307250031), said the plaintiffs in a joint case management statement Wednesday (docket 3:23-cv-02367) in U.S. District Court for Northern California in San Francisco. Their class action, the first of three filed against the company in recent weeks, alleges SiriusXM falsely advertises its music plans at lower prices than it charges due to a significant “U.S. music royalty fee” the company rarely discloses to subscribers. A case management conference is planned for Tuesday, and a hearing on the motion to compel is set for Sept. 27. If the court denies the motion, SiriusXM “will presumably exercise its right to an immediate direct appeal” under Section 16 of the Federal Arbitration Act, said the plaintiffs. That would cause “most activity at the district court level to cease until the disposition of the appeal,” they said. If the court grants the motion to compel, the arbitrator will determine motions, “rendering moot any motion schedule entered in this civil action,” they said. The plaintiffs will move “at the appropriate time” for class certification, they said. If the state of the evidence warrants, the plaintiffs “will move for summary judgment or summary adjudication,” they said. The plaintiffs’ discussion of the scheduling of their motions “is currently constrained by the uncertainty” of whether the court will grant or deny SiriusXM’s motion to compel, they said. SiriusXM agrees with the plaintiffs that discussion of scheduling of motions for class certification and dispositive motions is “premature” while the motion to compel remains “unresolved,” said the company in the joint statement. If the motion to compel is denied, SiriusXM proposes that the court set a further case management conference to take place within 30 days of remand after any appeal, or within 30 days of the expiration of any period for SiriusXM to file an appeal of an order denying the motion to compel, it said.