Multicultural Broadcasting - Air America Controversy

Air America Controversy

In 2004, two weeks after Air America Radio's debut, it was pulled off the Multicultural radio stations in the Chicago and Santa Monica markets due to a contract dispute. Air America alleged that Multicultural sold time on their Los Angeles station to both AAR and another party, and claimed that was why they stopped payment on checks due Multicultural while AAR investigated.

Multicultural noted that Air America bounced a check and claimed they were owed in excess of $1 million. Air America Radio filed a complaint in New York Supreme Court, charging breach of contract and was briefly granted an injunction to restore the network on WNTD-AM in Chicago. On April 20, the network announced the dispute had been settled, and Air America's last day of broadcast on WNTD was April 30. The New York Supreme Court ultimately concluded that the injunction was improvidently entered and that Air America Radio's court action was without merit, dismissing Air America's complaint and awarding over $250,000 in damages and attorneys' fees to Multicultural. According to a subsequent lawsuit filed by Multicultural, Air America Radio never paid the sums ordered by the court.