Sirius (SIRI) Sued by Howard Stern

Sirius XM Radio Inc. (NASDAQ:SIRI) is having trouble with its fading star Howard Stern, as he has sued the company via his own production company One Twelve Inc. for allegedly not paying him promised compensation.

Evidently Stern was promised when he signed on in 2006 a number of stock rewards based on the subscriber growth exceeding agreed upon estimates.

Don Buchwald, Sterns agent, filed the suit in New York court. He was allegedly to receive 10 percent of One Twelve Inc.'s compensation.

“When Sirius needed Stern, it promised him a share in any success that the company achieved,” according to the suit. “But now that Sirius has conquered its chief competitor and acquired more than 20 million subscribers, it has reneged on its commitment to Stern, unilaterally deciding that it has paid him enough.”

The plaintiffs are seeking unspecified amounts with interest.

Sirius closed Tuesday at $1.71, down $0.01, or 0.87 percent.