CBS Radio sues Howard Stern

CBS Corp's CBS Radio Inc. said on Tuesday it had filed suit against Howard Stern, Sirius Satellite Radio Inc and other parties alleging breach of contract, fraud and other claims related to Stern's move to Sirius earlier this year reports Reuters

Mr Stern was motivated, the complaint said, by a clause in his contract that called for Sirius to accelerate the payment of millions of shares to him if certain subscriber targets were met.

That payment was originally scheduled for 2010, but was made in January, according to the suit, and amounted to about $220m. By waiting, CBS contended, Mr Stern would have risked a decline in Sirius's stock price reports MSNBC.

"By taking action on CBS Radio's airtime in 2004 and 2005, Stern assured himself of immediate access to $200m in assets that could be readily converted to cash," alleged CBS, which demanded compensatory and punitive damages, but declined to specify an amount.

As reports of the lawsuit leaked out on Tuesday, Mr Stern called a press conference to pre-empt the claims.

He said he had disclosed his Sirius agreement to CBS, and accused Leslie Moonves, its chief executive, of launching a "personal vendetta".

Stern was a top draw on Infinity (now CBS) Radio for many years. His willingness to say almost anything, to celebrities, nude women in the studio, and others, built a steadfast fan base reports MarketWatch. However, hefty indecency fines levied by the Federal Communications Commission against stations that broadcast Stern's show led him to satellite radio, where content is unregulated.

Tuesday's suit comes at a time when ratings are reportedly down significantly at CBS radio stations where Stern is no longer heard, in major markets such as New York and Los Angeles.