Washington - Mar 1, 2007 - The Associated Press reports that U.S. Electronics, manufacturer of several Sirius receivers, is suing Sirius for $48 million in damages. U.S. Electronics alleges that Sirius breached its contract and failed to pay money owed to the manufacturer. The manufacturer also alleges that Sirius interfered with Sirius' relationships with other manufacturers and retailers, and that Sirius withheld information about the FCC's inquiry into the FM band retransmission feature of Sirius radios.

Sirius, which is based in New York, said that its contract with U.S. Electronics bars $41 million of the claimed damages under limitation of liability provisions. Sirius said it will vigorously defend itself against the action.