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CBS Radio Sues Stern, Sirius

Discussion in 'Sirius XM General Discussion' started by Chris Blount, Mar 1, 2006.

  1. Mar 1, 2006 #1 of 16
    Chris Blount

    Chris Blount Creator of DBSTalk Staff Member Administrator DBSTalk Gold Club

    Jun 22, 2001
    The battle between satellite radio and traditional AM/FM airwaves got more interesting Tuesday after CBS filed a lawsuit against shock jock - and Sirius' flagship personality - Howard Stern.

    According to a statement from CBS Radio, the radio giant filed suit against Howard Stern, his company One Twelve, agent Don Buchwald and Don Buchwald and Associates, and Sirius. The 43-page complaint seeks compensatory and punitive damages for multiple breaches of contract, fraud, unjust enrichment, and misappropriation of CBS Radio's broadcast time.

    The litigation also seeks further damages from Sirius Satellite Radio for unfair competition and tortious interference with Stern's CBS contract.

    The noteworthy item coming out of the lawsuit: CBS alleges that Stern repeatedly and willfully breached his written contract with CBS Radio during the last 22 months of that deal, 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.

    The suit further charges that Sirius knew Stern had a contractual obligation to maximize the prospects for the success of the CBS Radio program and to comply with his duty on good faith. "Sirius intentionally induced and caused Stern to breach these contractual provisions by offering to accelerate Stern's payment of millions of dollars in stock options to promote Sirius on CBS airwaves and by concealing Stern's stock interest from CBS Radio," the CBS Radio release states.

    As of press time, there was no comment on the litigation from Sirius.

    http://www.skyreport.com (Used with permission)
  2. Mar 1, 2006 #2 of 16

    wipeout Icon

    Jul 15, 2003
    Sour grapes.
  3. Mar 1, 2006 #3 of 16

    arundc AllStar

    Jan 13, 2006
    CBS has a point...do you think its right to constantly promote your Sirius jump on their network and thus driving up stock value? Then again Stern may be right too. Not sure how it will play out but would be interesting to follow.
  4. Mar 1, 2006 #4 of 16
    Mark Holtz

    Mark Holtz Day Sleeper DBSTalk Club

    Mar 23, 2002
    Sacramento, CA
    And a whole bunch of lawyers will get really really busy.
  5. Mar 1, 2006 #5 of 16

    chicagofilms New Member

    Feb 4, 2006
    Sour grapes indeed. This story has however successfully buried the bigger news that CBS is loosing some $9 billion.

    I really don't see how they can say Stern hijacked the airwaves. They had him on a delay and could have stopped him if they felt anything was inappropriate.

    Another dumb thing about it is that CBS booked Stern on their shows including Letterman for the purpose of discussing his move to satellite.
  6. Mar 1, 2006 #6 of 16

    deraz Daydreamer DBSTalk Gold Club

    Sep 25, 2004

    ...and 60 Minutes

    They gave Stern a free 20 minute commercial on a very popular, and probably very expensive, program.
  7. Mar 1, 2006 #7 of 16

    tomcrown1 Hall Of Fame

    Jan 16, 2006
    Naw i will sue Stern for giving dogs a bad name
  8. Mar 1, 2006 #8 of 16

    pez2002 Hall Of Fame

    Dec 13, 2002
  9. Mar 1, 2006 #9 of 16

    georgecostanza Mentor

    Jan 10, 2005
    The minute Howard told them he was going to Sirius, they should have walked him out the door. Why didn't they? They knew how much money they would lose when he was gone, so they let him stay and promote sirius. It's all on them, they could have pulled the plug at any minute, but instead they let him stay to the very last day. Truly, a case of sour grapes.:nono:
  10. Steve Mehs

    Steve Mehs Hall Of Fame

    Mar 21, 2002
    Because terrestrial radio is run by idiots.
  11. Fifty Caliber

    Fifty Caliber Banned User

    Jan 4, 2006
    Sour grapes produce the most whine.
  12. Ray_Clum

    Ray_Clum Hall Of Fame

    Apr 22, 2002
    One question about the concealing of the stocks - is it a possible SEC violation in this situation?
  13. LtMunst

    LtMunst Hall Of Fame

    Aug 24, 2005
    If he were a financial analyst or was somehow promoting Sirius stock as an investment, then yes, it would be a possible violation. Otherwise, he is under no obligation to disclose his ownership interests.
  14. skinnyJM

    skinnyJM Legend

    Nov 19, 2005
    One of the most accurate statements ever posted on the internet.

  15. spykedvodka

    spykedvodka Legend

    Jan 31, 2006
    Free Speach. That's what you get when you hire Howard. You never know what side he's gonna be on. They knew what could happen if they lost him and what control do they actually have because of their mess up. If anybody is to blame it's the FCC for the past 50 years for having out-dated laws.
  16. Steve Mehs

    Steve Mehs Hall Of Fame

    Mar 21, 2002
    Exactly! As the voiceover guy from KFI says "Freedom of speach, it also protects what you don't want to hear."

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