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JB in so cal
02-28-2006, 02:44 PM
The gloves are off!!!
CBS Radio Inc. Files Suit Against Howard Stern and Related Parties for Multiple Breaches of Contract, Misappropriation and Unjust Enrichment
Tuesday February 28, 5:00 pm ET
NEW YORK, Feb. 28 /PRNewswire/ -- CBS Radio today announced that it has filed suit against Howard Stern, his company One Twelve, Inc., his agent Don Buchwald, his agent's firm Don Buchwald & Associates, Inc. and Sirius Satellite Radio, Inc.
The lawsuit is for compensatory and punitive damages for multiple breaches of contract, fraud, unjust enrichment, and misappropriation of CBS Radio's broadcast time. It further seeks damages from Sirius Satellite Radio, Inc. for unfair competition and tortious interference with Stern's CBS contract.
The 43-page complaint charges:
* 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.
* 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. The complaint alleges that
the Sirius-Stern contract provided that Stern was to receive this stock
payment in 2010, but it had an acceleration provision that allowed
Stern to receive the compensation as early as January 2006 if these
subscriber targets were met. All of Stern's actions for which he
received this expedited compensation occurred during the time that
Stern was under exclusive contract with CBS Radio, when the Sirius
payment terms to Stern were kept secret.
* 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. Without the
accelerated payment, Stern would risk the decline of the Sirius 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.
* 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.
* That Stern also breached his contractual obligation to inform CBS Radio
of plans that might have a bearing on his future. Under the Agreement,
Stern had the obligation to give CBS Radio the first opportunity to
discuss participation in radio projects that are conceived during the
term of the Agreement, even if the concept or project was launched or
implemented after the term. Stern ignored that responsibility, and
negotiated and concluded his agreement with Sirius in secret.
* To this day, Stern continues to breach his contract by refusing to
return property that belongs to CBS Radio -- the recordings of his CBS
radio program that, under his Agreement with CBS Radio, belong to the
company.
The suit further charges that Sirius intentionally interfered with and procured Stern's breach of the Agreement. Sirius knew that Stern had a contractual obligation to maximize the prospects for the success of the CBS Radio program and to comply with his duty of 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 complaint in this lawsuit was filed in the Supreme Court of the State of New York, County of New York.

Howie Feltersnatch
02-28-2006, 02:48 PM
Sounds like CBS wishes they still had him... Too bad.

KACHINA KEN
02-28-2006, 02:59 PM
Sour Grapes, CBS needs to figure out how to hold onto viewers and not worry over lost opportunity.

riverracerx
02-28-2006, 03:00 PM
I thought you meant Howard boats?

mbrown2
02-28-2006, 03:59 PM
They could have taken him off the air anytime they wanted....they still sold advertising and profitted during his last two years...the fact that they did not take significant action against him themselves when he was continually bashing them and promoting Sirrus would lead a court to believe they were negligent themselves.

MagicMtnDan
02-28-2006, 04:04 PM
They could have taken him off the air anytime they wanted....they still sold advertising and profitted during his last two years...the fact that they did not take significant action against him themselves when he was continually bashing them and promoting Sirrus would lead a court to believe they were negligent themselves.
Nonsense! Of course they kept him on the air, sold advertising and profitted on his shows - they owned them!
This is all about Howard using time and airwaves of his former employer, CBS, to enrich himself and Sirius.
I'm no lawyer nor do I play one on TV but it sounds like they have a legitimate case. This one will take some time to play out.

Ziggy
02-28-2006, 04:04 PM
Fricken Sue-happy country we live in :crossx: :crossx: :crossx:

Mandelon
02-28-2006, 04:09 PM
Adam Corolla, American Genius. :rolleyes:

Debbolas
02-28-2006, 04:11 PM
I'm old.................I was thinking Howard Cosell.
"This is Howard Cosell"!!!
:D

OGShocker
02-28-2006, 04:14 PM
I thought you meant Howard boats?
Bwahahahahaha! I would care more about the topic. I say, Fock Stern!

Roaddogg 4040
02-28-2006, 04:19 PM
I'am no lawyer either but I played one at home once. Boy was I good. Anyway, CBS sucks for doing this. If they would of left Howard alone he might still be there. CBS SUCKS!!! Oh, I allready said that... :yuk:
Steve

Sleek-Jet
02-28-2006, 04:21 PM
Anyone going to loose any sleep over this???
Didn't think so...

BajaMike
02-28-2006, 04:26 PM
CBS needs to try to make money with thier programming instead of in the courts..... :idea:
:rollside: :boxed: :) :rollside: :boxed: :)

AZKC
02-28-2006, 04:30 PM
CBS and Stern, don't listen or watch either :boxed:

Waldo
02-28-2006, 04:36 PM
I thought you meant Howard boats?
Same here...I was thinking WTF, Why??

WaTchTheGelCoat
02-28-2006, 04:42 PM
I think sirius got ripped off.

JB in so cal
02-28-2006, 04:49 PM
CBS and Stern, don't listen or watch either :boxed:
Throw Sirius in that pile, too. I'm an XM guy.

mbrown2
02-28-2006, 04:52 PM
Play out or not, their lack of action against him while he was employed when he was allegedly breaching his contract will set precedent that his actions were not in violation and there lack of action then does not support the suit now....
Nonsense! Of course they kept him on the air, sold advertising and profitted on his shows - they owned them!
This is all about Howard using time and airwaves of his former employer, CBS, to enrich himself and Sirius.
I'm no lawyer nor do I play one on TV but it sounds like they have a legitimate case. This one will take some time to play out.

Chubby4Life
02-28-2006, 04:58 PM
Play out or not, their lack of action against him while he was employed when he was allegedly breaching his contract will set precedent that his actions were not in violation and there lack of action then does not support the suit now....
Maybe they were allowing him to "hang himself" by letting him trash them on the air, then they would have pretty good documentation for a later suit.
C4L

nodigg
02-28-2006, 05:00 PM
I thought you meant Howard boats?
That's what got me in here!

Nord
02-28-2006, 05:12 PM
Howard talked about it this morning, they will never win that suit.
CBS is bitter.
Clearchannel is losing their ass between Adam here and David Lee Roth in NewYork.
Sirius is rocking with Howard and even I have become a Bubba fan!

mbrown2
02-28-2006, 06:01 PM
Maybe they were allowing him to "hang himself" by letting him trash them on the air, then they would have pretty good documentation for a later suit.
C4L
By allowing it could/will be implied condoning of it....

Flying Tiger
02-28-2006, 07:20 PM
Sour Grapes, CBS needs to figure out how to hold onto viewers and not worry over lost opportunity.
That says it all.

Waldo
02-28-2006, 07:43 PM
THOR might have some insight on the legal side... :idea: :idea:

That Guy
02-28-2006, 08:14 PM
Play out or not, their lack of action against him while he was employed when he was allegedly breaching his contract will set precedent that his actions were not in violation and there lack of action then does not support the suit now....
Exactly right.... :cool:

Essex29
02-28-2006, 08:18 PM
Play out or not, their lack of action against him while he was employed when he was allegedly breaching his contract will set precedent that his actions were not in violation and there lack of action then does not support the suit now....
not bad for a Bad Religion fan :cool:

mbrown2
02-28-2006, 08:55 PM
not bad for a Bad Religion fan :cool:
Bad Religion happens to be one the of the most educated bands in any genre :)....those guys are a bunch pocket protector types...

Focker
02-28-2006, 09:04 PM
CBS and Stern, don't listen or watch either :boxed:
DITTO

Focker
02-28-2006, 09:05 PM
Contingent Lawsuit Will Have To Be Booked On A Corporations Financial Statements
Stock Will Price Will Fall

BoatFloating
02-28-2006, 09:47 PM
The key to this whole lawsuit was the fact that he would get paid for hitting subscriber numbers thru the end or 2005 and this was not disclosed to CBS while he was under contract at CBS. CBS did suspend him once for talking about Sirus to much and then he calmed down on the Sirus talk. You have to watch those stock deals.... Just ask Martha Stewart.

Ultrafied
02-28-2006, 10:15 PM
Not disclosed about hitting numbers for 2005???? It was on his show all the time. Hell, his whole contract was talked about by him on his show the last 4 months of 2005.

SoCal_fun
02-28-2006, 10:25 PM
Les Moonves is trying to distract everyone at CBS from the fact that his Radio division is taking a dive. He is gonna gert fired as soon as this lawsuit is thrown out of court. Haa Haa Ha! :)
Shoulda back Howard up and kept him happy and you wouldn't be having this problem Les (loser)! :argue:

Hardly Satisfied
03-01-2006, 02:34 AM
That's f**king crazy

That Guy
03-01-2006, 10:52 AM
It is just sour grapes...maybe the news that David Lee Roth has lost 75% of Stern's audience already and Adam Carolla isn't much better has them very concerned. They knew what Howard was doing and had every opportunity to stop him. The Motley Fool made a great point that this will just give Stern (who now has a much more limited audience and much less exposure to the general public on a daily basis) a national audience and platform to once again help Sirius generate new subscribers. Howard is much smarter than people give him credit for......

CA Stu
03-01-2006, 11:05 AM
I reckon a fair solution would be to count up all the air time Howard was pimping Sirius and bill him at the normal rate, then add court costs and lawyers fees, adn maybe a few million for breach of contract.
Then, they should give it all to his ex-wife, just to piss him off. :)
Thanks
CA Stu

OnlyMoney
03-01-2006, 11:16 AM
Even the Motley Fool (http://news.moneycentral.msn.com/ticker/article.asp?Feed=FOOL&Date=20060301&ID=5546988&Symbol=US:SIRI) thinks it's a waste of energy on CBS' part.

1978 Rogers
03-01-2006, 11:37 AM
I read about this yesterday on Yahoo. It said no suit filed yet. Wow, they went for it. This will get good.

Cole
03-01-2006, 12:24 PM
Anyone like the new Adam Corolla show......i just cant seem to get into it!!!
I think Adam is funnier than hell.... just keep finding myself back at KROQ....
did i hear that Ralph Garmin is leaving at the end of the week? :cry:

Nord
03-01-2006, 01:05 PM
I am not objective to new shows, but for me, nothing beats Howard and Bubba is even better for entertainment. I am in retail and need to be in a good mood every day and he does this for me in the morning.
Now,
If you guys listened to the whole show for about a week, I guarantee you would probably feel the same way!
Most people who don't like Howard are the ones who haven't givin him a chance or think the show is only what they showed on the E channel which is just a tiny excerpt of what goes on durring the show. He has A list celebs who let it all out on his show and its great.
If you have Sirius and don't like Howard,
turn it to the Martha Stewart Channel, Big Hair channel, or Gays only station and maybe you guys will find substance there!!!! :p :cool:

ZZ-Man
03-01-2006, 01:23 PM
If you listen to Howards show he doesn't even care. The show must go on !
I 've been a sternie since he hit LA and he has gone through a lot of garbage from the FCC and the government. He will just keep going. CBS is just getting more customers over to howard by giving him this attention its just what happens everytime someone trys to do something to him. He is the KING OF ALL MEDIA!

CA Stu
03-01-2006, 02:19 PM
Feh.
I listened to Stern for years and years, bought his first book, and even own a VHS copy of Butt Bongo Fiesta (with the 3d glasses), but I think his show went in the crapper after his divorce.
Artie is way funnier than Jackie was, but every other word out of Howard's mouth now is "I" or "me", and I just don't give a shit!
It gets old, man!
Howard went from being a perverted, insightful, brash, astute observer of society to a self centered petty azzhole when he got divorced.
I mostly listen XM in the car now. Conway can be pretty good in the evenings, Adam Carolla's show just flat out stinks.
Thanks
CA Stu

jbtrailerjim
03-01-2006, 02:35 PM
Anyone like the new Adam Corolla show......i just cant seem to get into it!!!
I think Adam is funnier than hell.... just keep finding myself back at KROQ....
did i hear that Ralph Garmin is leaving at the end of the week? :cry:
I listen to Adam Carolla a lot. I've been a fan of him since his days back at KROQ when he played the character Mr. Birchum on there. I think he's a funny mofo. I switch between him and KROQ in the morning but I find myself listening to Adam more and more now.

Cole
03-01-2006, 03:32 PM
I listen to Adam Carolla a lot. I've been a fan of him since his days back at KROQ when he played the character Mr. Birchum on there. I think he's a funny mofo. I switch between him and KROQ in the morning but I find myself listening to Adam more and more now.
Yea, i think i just need to give it more time!!!
I think he is funnier than hell on love line and k&bean

Sane Asylum
03-01-2006, 03:46 PM
Who gives a F^CK.............Howard Stern is a scumbag who has no respect for any female including his ex-wife...........
Wait a second and I'll tell you what I really think..........