N.Y. Judge Denies ‘In Substantial Part’ SiriusXM Motion to Dismiss Fraud Complaint

U.S. District Judge Paul Engelmayer for Southern New York in Manhattan denied “in substantial part” SiriusXM’s motion to dismiss the fraud complaint of Christopher Carovillano and Steven Brandt (see 2311140038), said the judge’s signed opinion and order Tuesday (docket 1:23-cv-04723). He granted the motion to dismiss only as to the complaint’s unjust enrichment claims and claims for injunctive relief, said the order. The plaintiffs allege that SiriusXM engages in a “false advertising and deceptive pricing scheme” when it markets and promotes its music plans “at lower prices than it actually charges.” The complaint “centrally alleges” that SiriusXM fails to inform subscribers who sign up for its music plans by phone of the 21.4% royalty fee before their purchase, and that SiriusXM references the fee only in obscure and inadequate terms on its website. “At this stage,” accepting the complaint’s “well-pled factual allegations as true,” the court finds that these “plausibly allege” that SiriusXM’s disclosures about the fee were misleading, in violation of sections 349 and 350 of the New York General Business Law, said the order. SiriusXM must answer the complaint by Feb. 20, it said.