Sirius XM pact on subscriber overcharges wins OK

* Fees to remain stable through year end

* Sirius XM said to abuse monopoly power via extra fees

By Jonathan Stempel

NEW YORK, May 20 (Reuters) - Sirius XM Radio Inc (SIRI.O) won a court's approval to settle a class-action lawsuit accusing the satellite radio company of abusing its monopoly power by illegally raising prices for subscribers.

Valued at $180 million, the accord calls for Sirius XM to hold steady or lower the base subscription price for an estimated 14 million of its subscribers in 2011, a lawyer for the subscribers said.

Sirius XM had planned to impose a $2 a month increase at the end of July. Various other fees will also be locked in, court papers show.

U.S. District Judge Harold Baer in Manhattan granted preliminary approval of the settlement late Thursday. A hearing to consider final approval is set for Aug. 8.

Sirius XM is home to programming including "shock jock" Howard Stern and Major League Baseball.

The New York-based company was created when Sirius Satellite Radio Inc bought its only rival, XM Satellite Holdings Inc, on July 29, 2008.

Subscribers had accused Sirius XM of violating antitrust law since that date by imposing fees on Internet streaming, music royalties and additional radios, even as it had complied with regulatory requirements by holding base prices steady.

These extra fees caused a typical subscriber to pay 40 percent more within one year of the merger, with the amount rising to $27.88 per month from $19.94, court papers show.

James Sabella, a partner at Grant & Eisenhofer who represents subscribers, in an interview said there had been a "misuse of monopoly power" by Sirius XM.

"The settlement prevents Sirius from raising prices for a meaningful period of time, and will benefit virtually all subscribers given that most of them renew," Sabella said.

Patrick Reilly, a Sirius XM spokesman, did not immediately return a call seeking comment.

The subscribers' lawyers are expected to seek approval for as much as $13 million for fees and costs, court papers show.

The case is Blessing et al v. Sirius XM Radio Inc, U.S. District Court, Southern District of New York, No. 09-10035. (Reporting by Jonathan Stempel in New York; Additional reporting by Liana B. Baker; Editing by Tim Dobbyn)