CBS, Stern Close to Settling $500M Suit
By John M. Higgins -- Broadcasting & Cable, 5/24/2006 2:29:00 PM
Shock jock Howard Stern is close to settling the breach of contract suit filed against him by former employer CBS Corp.
The Associated Press report that a Wednesday court hearing was postponed after lawyers for both sides informed a judicial hearing officer that they were settling the case.
CBS charges that Stern improperly used his slot on CBS’s Inifinity radio stations to promote his move to Sirius Satellite Radio, which gave him a five-year, $500 million deal.
A CBS spokesman said that no deal has yet been signed.
CBS filed suit in the New York State Supreme Court against the Sirius Shock jock, his agent, and Sirius, for "multiple breaches of contract, misappropriation and unjust enrichment."
Among the allegations were that Stern promoted Sirius on CBS's air in order to collect on a $220 million dollar stock deal triggered by the number of new subs he generated for the satellite radio company. CBS says Stern did not reveal that the stock deal could trigger as early as January 2006.
CBS also said Sirius induced Stern to breach his contract and that Stern breached his contract by negotiating to move to Sirius in the first place. It even said Stern has property that belongs to CBS: recordings of his CBS show.--John Eggerton contributed to this report.
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