ARN Media Ltd (ASX: A1N) shares are under pressure once again after the radio company's former star Jackie O filed a wrongful termination lawsuit against it, claiming she is owed at least $82.2 million.
This follows a lawsuit lodged last week by her former on-air partner, Kyle Sandilands, who is also arguing his contract was wrongfully terminated.
Major legal headache
The lawsuits could be ruinous for the company, with each aggrieved party employed under a $100 million contract that stretched out to 2034.
The lawsuits spring from an on-air falling out between the pair on The Kyle and Jackie O Show, after which Jackie O – real name Jacqueline Henderson – refused to go back on air with Sandilands.
Ms Henderson, at the time, ARN said, gave notice that she "cannot continue to work with Mr Kyle Sandilands."
ARN Media said then that it had terminated its agreement with Henderson, while offering her the possibility of another show on the network.
The company said in its statement to the ASX on Tuesday that Ms Henderson had now formally filed a suit against it.
The company added:
In summary, the applicants claim that the termination of Ms Henderson's contract constituted adverse action. Ms Henderson sent a 'Complaint Letter' to Commonwealth Broadcasting Corporation which noted that Ms Henderson "cannot continue to work with Mr Kyle Sandilands" and made psychosocial health and safety and bullying complaints in relation to the conduct of Mr Kyle Sandilands on and prior to 20 February 2026. It is alleged that the Complaint Letter involved the exercise or proposal to exercise workplace rights, and that the contract was terminated because of that exercise or proposed exercise, in alleged contravention of section 340 of the Fair Work Act 2009 (Cth). It is also alleged the termination of her contract amounted to a repudiation of that agreement.
ARN said Ms Henderson was claiming compensation of "at least" $82.25 million, plus a pecuniary penalty.
ARN said it disputes the claims and intends to defend the proceedings.
The company added:
Given the early stage of the matter, ARN is unable to reliably estimate the outcome or any potential financial impact.
Shock jock aggrieved
Sandilands' claim, filed last week, did not include a dollar figure; however, it did ask for "specific performance of two contracts", with the quantum likely to be in a similar range to Henderson's.
ARN said Sandilands is claiming that, "the termination of Mr Sandilands' contract was invalid on the basis they allege that there was no act of serious misconduct or breach of contract, and that the termination was unconscionable under the Australian Consumer Law''.
Taken together, if successful, the two legal claims would dwarf the size of ARN Media, which was last valued at $90.8 million. The company's shares were 3.5% lower at 28 cents on Tuesday morning.
The post The Kyle and Jackie O saga continues, with a massive new legal claim filed appeared first on The Motley Fool Australia.
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