CBS Sues Howard Stern Over Move to Sirius

from LA Times

CBS Radio jolted shock jock Howard Stern and Sirius Satellite Radio Inc. on Tuesday with a $218-million lawsuit that alleged Stern misused the company's airtime in a scheme to boost the payment he received when he moved to Sirius in January.

CBS contends that while it employed Stern, the host spent more than a year hyping his upcoming switch to Sirius and, as a result, improperly enriched himself, "pocketing over $200 million for his personal benefit" by driving up Sirius' subscriber numbers.

The subscription increase allowed Stern to trigger an early grant of more than 34 million shares of Sirius stock, valued at about $220 million, the suit alleged. That compensation was disclosed by Sirius this year after Stern had signed off CBS' airwaves.

In addition to the $218 million in restitution, CBS is seeking unspecified punitive damages. Stern began broadcasting with Sirius in January under a five-year contract worth more than $600 million. Stern's frequent mentions of Sirius on his CBS show in the days leading up to his departure did earn him a one-day suspension in November. Stern and his on-air crew frequently referred to Sirius in code as "eh eh."