CBS Radio Sues Stern, Agent, Sirius

CBS Radio filed suit against Howard Stern, Sirius Satellite Radio, Stern’s company One Twelve, Inc, his agent Don Buchwald and his agent’s firm Don Buchwald & Associates, Inc.
The 43-page complaint, filed in the Supreme Court of the State of New York, is for compensatory and punitive damages for multiple breaches of contract, fraud, unjust enrichment, and misappropriation of CBS Radio’s broadcast time, according to the broadcaster. CBS Radio also seeks damages from Sirius, alleging unfair competition and interference with Stern’s CBS contract.
Specifically, CBS Radio alleges that Stern “breached his written contract with CBS Radio over the last 22 months of the agreement, misappropriated millions of dollars worth of CBS Radio airtime for his own financial benefit, and fraudulently concealed his interest in hundreds of millions of dollars of Sirius stock while promoting it on the air,” according to CBS.
Sirius gave to Stern and his agent more than 34 million shares of Sirius stock, valued at approximately $220 million, because Sirius exceeded by the end of 2005 certain subscriber targets that were set in the Sirius-Stern contract, we’ve previously reported.
CBS Radio says Stern’s actions, for which he received expedited compensation, occurred when the shock jock was under exclusive contract with CBS Radio. In the complaint, the broadcaster says Stern wanted to receive that stock as soon as possible, “while Sirius’s stock was extremely valuable” or risk a drop in that stock value.
“By taking action on CBS Radio’s airtime in 2004 and 2005, Stern assured himself of immediate access to $200 million in assets that could be readily converted to cash,” alleges CBS Radio in the complaint.
Further, by repeatedly promoting Sirius, Stern “misappropriated millions of dollars worth of CBS Radio airtime for his own financial benefit” and for the benefit of his agent, Don Buchwald and Sirius, alleges CBS.
Stern ignored his obligation to CBS and negotiated his agreement with Sirius in secret and still refuses to return programs that are the property of CBS Radio, according to CBS.
Reuters reported Stern said in a press conference that CBS had a “vendetta” against him.
The New York Post reported the lawsuit would seek $500 million from Stern.
A Sirius spokesman said the broadcaster had not yet received the complaint and could not comment.