Imus Punches Back at The Eye

CBS might call itself the most watched U.S. television network of the moment, but CBS Radio is doing its best to rain on the company's profit parade.

On Thursday, CBS reported first-quarter net earnings down 6 percent from a year ago. Revenue at CBS Radio fell 9 percent to $398 million, which went a good way towards canceling out a 2 percent rise in revenue achieved at the much larger television unit.

And CBS radio is soon to have another drag on its bottom line - a lawsuit that the recently dissed and dismissed Don Imus is said to be mounting against his former employer.

According to Fortune magazine, the radio shock jock feels entitled to the $40 million that was still left on his contract when Les Moonves pulled the plug on 'Imus in the Morning' on April 12.

Fortune reports that Imus has already hired blockbuster First Amendment lawyer Martin Garbus and the pair could be filing suit within the month. Imus, who made a career off of his trademark acid-tongued commentary, claims that his contract with CBS implicitly encouraged the use of off-color humor.

He also says that the contract entitled him to one "gimme" if a comment ever crossed the line - in other words, his inflammatory remarks about the Rutgers women's basketball team should not on their own have been sufficient grounds for his firing.

CBS lawyers maintain that Imus was fired with just cause and is not owed the remaining money.

Imus may have a hard time making a case for First Amendment violation due to Federal Communications Commission regulations that apply to speech over the public airwaves; his argument would hinge on whether Imus' comments meet the definition of profanity under FCC guidelines.

Regardless of the outcome, it looks like there will be hefty legal fees on CBS's income statement in the near future.

by Liz Gunnison

Photograph by Richard Drew/Associated Press