Sirius XM Class Action Lawsuit, Hidden Fees, Billing Violations & $28M Settlement Exposed

A federal judge denied Sirius XM’s motion to dismiss a class action lawsuit alleging the satellite broadcaster hides a 21.4% “U.S. Music Royalty Fee” from subscribers by advertising lower prices than actually charged. Separately, Sirius XM agreed to pay $28 million to settle TCPA violations for unwanted telemarketing calls to consumers on do-not-call registries. Meanwhile, New York courts found Sirius XM violated federal law by forcing customers through deliberately burdensome cancellation processes.

Multiple legal battles expose systematic consumer protection failures at the satellite radio giant. Subscribers facing billing disputes, unauthorized charges, or cancellation obstacles now have mounting evidence courts take these violations seriously.

Hidden Royalty Fee Lawsuit: The 21.4% Pricing Deception

Four Oregon residents filed a class action in June 2024 accusing Sirius XM of running a deceptive pricing scheme by falsely advertising music plans at lower prices without disclosing a mandatory 21.4% U.S. Music Royalty Fee.

The company never mentions “U.S. Music Royalty Fee” in advertising—only stating “fees and taxes apply” in fine print. After subscribers enroll, Sirius XM prevents them from learning about the scheme by never sending monthly billing notices or invoices.

The Numbers Behind the Fee

In 2023, Sirius XM collected $1.36 billion in royalty fee charges while posting $1.26 billion in total company net profits—making royalty fee revenues equal to 108% of entire company profits.

Since introducing the fee in 2009, Sirius XM allegedly extracted over $130 million from Oregon consumers alone. The lawsuit estimates $242 million taken from Washington consumers and $690 million from Florida subscribers.

Court Rejects Sirius XM’s Defense

Sirius XM filed a motion to dismiss in April 2025, arguing the lawsuit was filed too late and should be denied as moot because the company changed its advertising to include “all-in pricing” under new California law.

Judge Michael H. Simon denied the motion, ruling that a jury could find plaintiffs “might reasonably miss such a small additional charge in the cacophony of everyday life”. The court determined Sirius XM’s arguments lacked merit and were intentionally false and misleading, allowing discovery to move forward.

Sirius XM Class Action Lawsuit, Hidden Fees, Billing Violations & $28M Settlement Exposed

Washington State Email Marketing Lawsuit

In May 2024, plaintiffs Cynthia Stutsman and Michael Peterson filed a class action in Washington state court alleging Sirius XM sent misleading emails advertising lower prices than actually charged.

The lawsuit seeks to represent Washington consumers who never paid for a Sirius XM subscription but received emails prior to July 1, 2024, containing false pricing information in subject lines. Plaintiffs demand $500 in statutory damages for each violative email received, plus attorney fees and costs.

$28 Million TCPA Settlement: Unwanted Telemarketing Calls

Sirius XM agreed to pay $28 million to settle a class action alleging it made telephone solicitation calls to individuals registered on the National Do Not Call Registry or Sirius XM’s internal do-not-call list.

Settlement Eligibility Requirements

Who Qualifies for Payment:

Individuals who received more than one telephone sales call in a 12-month period between April 27, 2019, and October 31, 2025, on landline, wireless, cell or mobile numbers by or on behalf of Sirius XM
Recipients who were not self-paying Sirius XM subscribers at the time of the first call or before the second call
Recipients who received calls after asking to register their number on Sirius XM’s internal do-not-call list

Settlement Payment Details

Each approved claimant receives a pro rata cash payment up to $1,500 from the net settlement fund, with final amounts determined by total claims filed. Counsel filed a motion for preliminary approval on October 3, 2025.

Settlement Timeline:

Settlement website operational: January 15, 2026, or 10 days after preliminary approval
Claim deadline: No later than 40 days prior to final approval hearing
Final approval hearing: Preferably the week of March 31, 2026
Payment distribution: Approximately 60 days after final approval

How to File a Claim: Class members must submit a claim form online or download a PDF form to mail to: SXM TCPA Settlement Administrator, Attn: Claim Form Submissions, 1650 Arch St., Suite 2210, Philadelphia, PA 19103.

New York Cancellation Lawsuit Victory

New York Attorney General Letitia James sued Sirius XM in December 2023 after hundreds of consumers reported they could not cancel subscriptions.

Deliberate Cancellation Obstacles

An OAG investigation found Sirius XM forces subscribers to call or chat with agents who deliberately draw out interactions as a strategy to prevent cancellation. The company trains agents not to take “no” for an answer, keeping customers in lengthy six-part conversations with multiple retention offers.

According to Sirius XM data, canceling takes subscribers an average of 11.5 minutes by phone and 30 minutes online. One subscriber was kept in a chat for 40 minutes despite clear cancellation requests—yet the company continued charging them and claimed it could not locate any cancellation request.

Court Rules Against Sirius XM

Justice Lyle Frank of the New York Supreme Court found Sirius XM violated the federal Restore Online Shoppers’ Confidence Act (ROSCA) by creating a burdensome cancellation procedure significantly more complicated than the sign-up process.

The court ordered Sirius XM to change its cancellation procedures in New York to ensure customers have a simple method to cancel without speaking to a live agent.

$36 Million Stockholder Settlement Distributed

Sirius XM and Liberty Media settled a stockholder class action for $36 million, with initial distribution occurring on February 18, 2025. The lawsuit alleged breach of fiduciary duty claims related to stock repurchases that increased Liberty Media’s proportionate ownership.

The settlement class consisted of all holders of Sirius XM common stock as of January 5, 2024. Eligible class members did not need to submit a claim form to receive pro rata payments based on shares held.

Consumer Protection Laws Violated by Sirius XM

Oregon Unlawful Trade Practices Act (UTPA)

Plaintiffs argued Sirius XM violated Oregon’s UTPA by engaging in deceptive pricing practices and breaching the implied covenant of good faith and fair dealing. The statute prohibits misleading advertising and unfair business practices that deceive consumers.

Federal ROSCA Violations

ROSCA requires automatic renewal offers to provide cancellation mechanisms that are simple, timely, and easy to use. New York courts found Sirius XM’s deliberately complicated cancellation process violated federal consumer protection standards.

Telephone Consumer Protection Act (TCPA)

The TCPA regulates autodialer use and prohibits non-emergency calls to cell phones without prior consent. Sirius XM allegedly violated TCPA by making automated telemarketing calls to consumers on do-not-call registries.

Washington Consumer Protection Laws

The Washington Consumer Protection Act and Washington Commercial Electronic Mail Act prohibit misleading email subject lines and deceptive marketing practices.

What Subscribers Should Know About Their Rights

Sirius XM subscribers experiencing billing issues, unauthorized charges, or cancellation difficulties have multiple legal protections:

Immediate Actions:

Document all communications with Sirius XM (save emails, chat transcripts, phone call notes)
Review credit card statements for undisclosed fees
Check eligibility for pending class action settlements
File complaints with state attorneys general and the FTC

Legal Remedies Available:

Join existing class actions if eligible
File individual consumer protection claims
Dispute unauthorized charges with credit card companies
Report TCPA violations for unwanted calls

Cancellation Rights: Following the New York court decision, consumers should demand immediate online cancellation without agent interaction. If Sirius XM refuses, document the experience and file complaints with consumer protection agencies.

Comparison to Similar Class Action Cases

The Sirius XM litigation mirrors broader consumer protection enforcement trends. California’s Auto Renewal Task Force (CART) consisting of district attorneys actively enforces autorenewal laws, while the FTC proposed expanded negative option rules in January 2024.

Previous TCPA settlements demonstrate the financial exposure companies face. Sirius XM previously paid $35 million in a 2016 TCPA settlement for autodialer violations to trial subscribers.

How to Determine If You’re Affected

Hidden Royalty Fee Claims: Review Sirius XM invoices for undisclosed fees charged beyond advertised prices. If you subscribed to music plans advertised at specific rates but were charged additional amounts without clear disclosure, you may have claims under state consumer protection laws.

TCPA Settlement Eligibility: Check phone records for Sirius XM calls received between April 2019 and October 2025 if you were not a paying subscriber at the time. Multiple unwanted calls may qualify you for the $28 million settlement.

Cancellation Violations: If Sirius XM refused online cancellation, required lengthy agent conversations, or continued charging after cancellation requests, document these experiences for potential claims under ROSCA and state consumer protection statutes.

Expert Analysis: Subscriber Rights and Enforcement

Consumer protection attorneys emphasize several key points about the Sirius XM litigation:

Pricing Transparency: Companies cannot hide mandatory fees in fine print while advertising lower prices. All-in pricing must reflect actual costs consumers pay.

Cancellation Simplicity: Subscription cancellations must be as easy as sign-up processes. Complex retention tactics that waste consumer time violate federal and state laws.

Consent Requirements: Telemarketing calls require express written consent. Do-not-call registry listings must be honored, and internal opt-out requests create legal obligations.

Resources for Affected Subscribers

Government Agencies:

Federal Trade Commission: ftc.gov/complaint
State Attorneys General Offices: File complaints about deceptive practices
Consumer Financial Protection Bureau: Report subscription billing issues

Legal Information:

Class action settlement tracking sites monitor payment distributions
Consumer protection attorneys offer free consultations for potential claims
State bar associations provide lawyer referral services

Settlement Administrators: Monitor official settlement websites for claim forms, deadlines, and payment schedules. Always verify settlement legitimacy through court documents before providing personal information.

Frequently Asked Questions

Can I get money from the Sirius XM class action lawsuit?

Yes, if you received unwanted telemarketing calls from Sirius XM between April 2019 and October 2025 while not being a paying subscriber, you may qualify for the $28 million TCPA settlement paying up to $1,500 per claimant. File a claim form through the official settlement website when it launches in January 2026.

How do I cancel my Sirius XM subscription without hassle?

Following the New York court decision, Sirius XM must provide simple cancellation methods without requiring live agent interaction. Demand online cancellation through your account. If the company refuses, document the experience and file complaints with your state attorney general citing ROSCA violations.

What is the U.S. Music Royalty Fee that Sirius XM charges?

The U.S. Music Royalty Fee is a 21.4% additional charge Sirius XM adds to music plan subscriptions without disclosure in advertising. This fee is not government-mandated despite what customer service agents may claim—it’s an invented charge that generated $1.36 billion in 2023.

How long do I have to file a claim for the TCPA settlement?

The claim deadline is no later than 40 days prior to the final approval hearing scheduled for the week of March 31, 2026. Settlement notices will be issued 15 days after the administrator receives the class member list, giving eligible claimants several months to file.

What violations did courts find against Sirius XM?

Courts found Sirius XM violated the federal Restore Online Shoppers’ Confidence Act (ROSCA) by creating burdensome cancellation procedures. Federal judges also ruled the company’s royalty fee disclosure practices violated Oregon’s Unlawful Trade Practices Act. TCPA violations involved making unauthorized telemarketing calls to do-not-call registries.

Can Sirius XM continue charging me if I requested cancellation?

No. If you clearly requested cancellation and Sirius XM continued charging you, this violates consumer protection laws. Dispute charges with your credit card company, file complaints with state attorneys general, and document all cancellation attempts for potential legal claims.

Who is eligible for the stockholder settlement distribution?

The stockholder settlement covered all holders of Sirius XM common stock as of January 5, 2024. The initial distribution of the $36 million settlement occurred on February 18, 2025, and no claim form was required.

Legal Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult an attorney specializing in class action law or consumer protection law for legal guidance regarding your specific situation.

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About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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