CBS Sues Sirius, Howard Stern For Contract Breach, Unjust Enrichment, Other Causes of Action

CBS Radio has announced it is suing Howard Stern, Sirius Satellite Radio and various others for compensatory and punitive damages in the hundreds of millions of dollars for “multiple breaches of contract, fraud, unjust enrichment, and misappropriation of CBS Radio’s broadcast time.” In a press release that reproduces part of its complaint, filed in the New York County Supreme Court, CBS Radio alleges that “Howard Stern repeatedly and willfully breached his written contract with CBS Radio over the last 22 months of that contract, 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”and that “…on or about January 9, 2006, Sirius paid over 34 million shares of stock, valued at approximately $220 million, to Stern and his agent because Sirius exceeded by the end of 2005 certain subscriber targets that were set in the Sirius-Stern contract….This contract thus provided a compelling incentive for Stern to do all        that he could to help Sirius reach the subscriber targets by the end of 2005 so that he could receive his Sirius stock payment as soon as possible while Sirius’s stock was extremely valuable….By engaging in continuous promotion of Sirius on CBS Radio airtime without any payment by Sirius to CBS for these advertisements and by pocketing over $200 million dollars for his personal benefit, Stern misappropriated millions of dollars worth of CBS Radio airtime for his own financial benefit and the financial benefit of Don Buchwald, his agent, and Sirius in contravention of repeated directives by CBS Radio.” Read CBS’ press release here.

Stern called a press conference to rebut CBS’ charges, during which he responded that his former employer knew that he planned to move to Sirius. Read more here.