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June 30, 2004
Clear Channel Sued for Dropping Howard Stern Show
NEW YORK (Reuters) - Two companies affiliated with the raunchy Howard Stern show filed a lawsuit seeking more than $10 million against Clear Channel Communications Inc. on Wednesday, accusing the nation's largest radio-station owner of breaking contracts to air the shock jock in six cities.
In a related move, Infinity Broadcasting Inc., the Viacom Inc. . unit that syndicates Stern's program, said it would carry the show in four new markets.
Clear Channel, facing complaints from federal regulators for indecent antics of disc jockeys, dropped Stern in February from stations in Florida, California, Pennsylvania, New York and Kentucky.
The suit, filed in Manhattan federal court by two licensers of the program, said that Clear Channel violated terms of the agreements to air the show in those markets. The complaint was filed by One Twelve Inc., which provides Stern's services, and Infinity Broadcasting East, the FCC licensee of WXRK, the New York radio station where the show is produced.
In the action that will add outlets for Stern, Infinity Broadcasting said the four new markets would include Tampa, Florida; Houston and Austin, Texas; and Fresno, California. That would put the show on 45 stations in all, 27 of which are owned by Infinity.
In the suit against Clear Channel, Infinity and One Twelve accuse the company of wrongfully failing to notify them the show was being dropped as required by the contracts. They also charge that they are owed license fees.
The terms are contained in six license agreements for the stations dated between May 2001 and September 2002.
"Howard Stern is the only one who has broken the law." Andy Levin, Clear Channel executive vice president and chief legal officer, said in a statement. "His contract explicitly requires his show comply with all FCC rules and regulations. On several occasions, it clearly did not. Clear Channel Radio had both a legal right and an obligation to stop broadcasting it."
In June, Clear Channel admitted to airing indecent material and agreed to pay a record $1.75 million penalty to settle all existing complaints.
The company also agreed to take steps to prevent further such incidents, including formalizing its "zero tolerance" policy and training employees.
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