CBS Radio, the new name for US radio group Infinity, is suing Howard Stern over allegations that the legendary shock jock was guilty of fraud, unjust enrichment, misappropriation and multiple breaches of contract during the time that he continued to work for the Infinity network while preparing to launch his own channels with the Sirius satellite radio network. The radio company is seeking both compensatory and punitive damages.
Most of the charges relate to Stern's well documented use of his syndicated daily radio show on the Infinity network to promote the Sirius network. Stern decided to switch to the satellite network not because of any major falling our with Infinity bosses, but because the regulations governing satellite radio aren't so strict. Nevertheless, once signed to Sirius, Stern had to complete his contract with the Infinity network which meant the radio host had over a year with the terrestrial station when he knew that he was eventually taking his show to the satellite betwork.
Although that was in theory for Infinity's benefit, this put the radio company in a tricky position. Stern used a lot of his Infinity show to encourage his listeners to sign up to their satellite rivals - something that pleased neither Infinity's top execs, or the other terrestrial stations that syndicated the show. The problem was that while Infinity could complain about this, if they fired Stern they would free him from his contract - allowing him to go over to Sirius quicker, and in a blaze of publicity, and without a replacement confirmed for Infinity. This situation continued for over a year, although in the end - despite some minor falling outs - both parties seemingly left on good terms, publicly at least.
But having learned that Stern and his people received an equity bonus for helping boost Sirius subscriptions in 2005, Infinity, now CBS Radio, is hoping to get the last laugh through the courts. Because Stern arguably had an unstated personal financial interest in boosting Sirius subscriptions, his use of Infinity air time to promote the satellite broadcaster was arguably fraudulent, arguably a misappropriation of Infinity air time, and certainly a breach of contract.
Stern quickly responded to many of the charges at a pre-emptive press conference yesterday. As you'd expect, he is trying to position CBS Radio as the "bullies" in this piece, telling his listeners: "I did everything in this world that they never could have accomplished on their own... But me they obsess on. And me they go after... So when somebody tells you that it's not personal, it's personal."