Stern Words From CBS

CBS (CBS) sued Sirius (SIRI) and shock jock Howard Stern.

Citing what it called "multiple breaches of contract, misappropriation and unjust enrichment," CBS Radio said it sued Stern, his agent and his company. CBS wants $500 million in damages -- matching the amount Stern signed for at the end of 2004, when he agreed to walk away from CBS' Infinity radio unit and join Sirius.

"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," CBS says its 43-page suit claims.

Sirius reps weren't immediately available for comment.

The lawsuit episode began to play out Tuesday morning, when the New York Post reported in its Page Six gossip column that CBS was about to sue Stern. Stern, who has made no secret of his distaste for CBS chief Les Moonves, lashed out at CBS and Moonves in a Tuesday afternoon press conference, Reuters reported.

"I'm offended. I really do think this is a personal vendetta," Stern told the news conference, according to Reuters. "Les has had it in for me for a long time. I don't deserve it."

Stern agreed to join Sirius in October 2004, when he still had more than a year to run on his contract with Infinity. He stayed on with the free broadcaster but spent much time mocking the company and talking up his Sirius gig. In the runup to his joining Sirius last month, Stern has bolstered the cash-burning company's subscriber growth, partly at the expense of rival XM (XMSR). In the fourth quarter ended in December, Sirius outpaced older XM on the subscriber-acquisition front for the first time ever.