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Radio Dustup! CBS Radio Sues Stern for Contract Breach
Rumors circulating today of a possible CBS Radio lawsuit against former long-time employee Howard Stern became reality today, claiming $500 million in "compensatory and punitive damages for multiple breaches of contract, fraud, unjust enrichment, and misappropriation of CBS Radio's broadcast time. It further seeks damages from Sirius Satellite Radio, Inc. for unfair competition and tortious interference with Stern's CBS contract" as well as Howard Stern's production company One Twelve Inc, his agent Don Buchwald and his agency.
Looks like yesterday's announced major ratings losses (the first new ratings since Stern left) was all the evidence CBS Radio needed to show damages.
After quietly and respectfully taking it on the chin for the months leading up to Stern's departure in mid-December, looks like CBS is hitting back. Now this story could get very nasty and get tied up in courts for years. CBS filed with the Supreme Court of the State of New York, County of New York. If Anna Nicole Smith can get her 10-year lawsuit to the Federal Supreme Court, maybe this CBS/Stern battle will eventually end up there, too, after both sides exhaust appeal decisions.
Among the complaints are that Stern unjustly used CBS Radio (then known as Infinity Broadcasting) airtime during his show to promote Sirius during the remaining 22 months of his contract, which ultimately helped deliver a $200 million mega-bonus Sirius payout to Stern in January for exceeding new subscriber goals once Stern began his new satellite show.
Stern has a completely different view. In a press conference late this afternoon, Stern discussed the pending lawsuit just before it was officially delivered. In his words: "I'm offended. I really do think this is a personal vendetta. Les (Moonves, CBS CEO) has had it in for me for a long time. I don't deserve it.".
To read the 43-pages of legal complaints filed by CBS Radio, click here;; or here; or here.
posted by Unknown @ Tuesday, February 28, 2006,
