[opendtv] Re: News: CBS posts $9 billion loss on TV and radio

----- Original Message ----- 
From: "Craig Birkmaier" <craig@xxxxxxxxx>
>
> CBS posts $9 billion loss on TV and radio

That's OK, CBS has a plan to recoup some of this loss...

John

http://biz.yahoo.com/prnews/060228/nytu192.html?.v=25

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. 


 
 
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