ARN Media countersues Kyle Sandilands and Jackie 'O' Henderson over contract disputes and bullying allegations
Consensus Summary
Kyle Sandilands and Jackie 'O' Henderson, co-hosts of ARN Media’s *The Kyle and Jackie O Show* on KIIS FM, are embroiled in a high-stakes legal battle after their 20-year partnership ended abruptly following an on-air dispute on February 20, 2026. Both hosts sued ARN Media separately, seeking over $160 million in damages for alleged wrongful termination, while ARN countersued for breach of contract, lost advertising revenue, and legal costs. The core dispute centers on claims that Sandilands repeatedly bullied Henderson, leaving her 'psychologically unwell,' with Henderson’s lawyers alleging ARN failed to address the issue despite awareness. ARN argues it had no control over on-air content, as the hosts’ companies managed programming, and that Henderson’s refusal to work with Sandilands breached her contract. Court documents reveal Sandilands made derogatory remarks about ARN executives, including calling CEO Michael Stephenson a 'p---y' in June 2025, and allegedly belittled Henderson off-air in September 2025. The Federal Court hearing on April 25, 2026, will determine liability, with ARN seeking to claw back millions in bonuses and lost profits while the hosts push for reinstatement and compensation.
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Key details reported by multiple sources:
- Kyle Sandilands and Jackie 'O' Henderson were co-hosts of ARN Media's *The Kyle and Jackie O Show* on KIIS FM for over 20 years.
- The show's termination followed an on-air dispute on February 20, 2026, where Sandilands allegedly called Henderson 'off with the fairies'.
- ARN Media's subsidiary, Commonwealth Broadcasting Corporation (CBC), filed a counterclaim against Sandilands and Henderson seeking damages for breach of contract, lost advertising revenue, and legal costs.
- Sandilands and Henderson each sued ARN Media separately, seeking at least $85 million and $82 million respectively, with combined claims exceeding $160 million.
- ARN Media claims it is entitled to claw back 87.92% of a $3 million signing bonus paid to Sandilands’ company, Quasar Media, totaling $2,637,732.
- Henderson’s lawyers alleged in a February 26, 2026, letter to ARN that Sandilands’s bullying left her 'psychologically unwell, defamed, and humiliated'.
- ARN Media argues it had no power to intervene during broadcasts, as Sandilands and Henderson’s companies (Quasar and Henderson Media) controlled program content.
- The Federal Court hearing on the matter is scheduled for April 25, 2026.
- ARN Media’s CEO, Michael Stephenson, previously served as COO and was publicly insulted by Sandilands on air in June 2025, calling him a 'p---y'.
- ARN Media claims the show’s cancellation led to lost advertising revenue and profits, with damages estimated in the millions.
Points of Difference
Details reported by only one source:
- ARN senior executives were allegedly aware of Jackie 'O' Henderson’s bullying complaints against Kyle Sandilands, with Henderson’s lawyers claiming the company had 'failed to act in compliance with its obligations to provide a safe workplace'.
- Henderson’s lawyers warned ARN that reporting the matter to SafeWork NSW would likely result in a finding that the company breached its duty of care.
- Sandilands rejected bullying allegations, stating: 'Everyone says things from time to time, especially with people that you're close with... This has all turned into quite a circus.'
- ARN’s defence includes a 2025 broadcast where Sandilands told censors: 'Don’t go bleeping this shit out or you censors will have no job.'
- ARN argues Henderson Media, not CBC, was responsible for ensuring her health and safety under their $9.4 million annual deal.
- Henderson’s lawyers sent a 'Complaint Letter' to ARN on February 26, 2026, alleging she was 'attacked and bullied on live prime time radio' and considering defamation proceedings.
- ARN’s defence states Henderson Media and Quasar were 'solely responsible for controlling the manner in which it provides Program Services'.
- ARN claims Sandilands made off-air remarks in September 2025, saying: 'Don’t f---ing bother coming back until you’ve got your f---ing shit together like a normal person... I’ve been carrying the whole show for a f---ing year.'
- ARN’s then-chief content officer, Lauren Joyce, wrote to Henderson’s manager in September 2025, stating: 'This is a serious matter, and Jackie’s wellbeing is our priority.'
- Henderson’s manager, Gemma O’Neill, responded the next day that the company 'should already have all the information it needed' and later stated the issue was 'resolved' in December 2025.
- ARN directed Sandilands in October 2025 to avoid discussing criticism of ARN executives, legal proceedings, or ACMA/News Corp-related topics.
- Sandilands allegedly threatened to 'get nasty behind the scenes' regarding the Mad F---ing Witches activist group in November 2025.
- ARN’s lawyer Shaun Miller stated it was 'unlikely ARN would be held responsible for not investigating a matter that, according to Gemma O’Neill, had been resolved.'
Contradictions
Conflicting information between sources:
- ABC and THEAGE/SMH report that Henderson’s lawyers claimed ARN was aware of bullying, but NEWSCOMAU states ARN argues Henderson Media (not CBC) was responsible for her safety under their contract.
- ABC states Henderson’s lawyers warned ARN of a SafeWork NSW ruling against it, but THEAGE/SMH imply ARN may not be liable due to Henderson’s manager declaring the issue 'resolved'.
- THEAGE/SMH claim Sandilands was sacked in March 2026, but ABC does not specify a sacking date, only that the dispute led to the show’s abrupt end in February 2026.
- NEWSCOMAU says ARN had 'no ability or powers' to stop Sandilands’s bullying, while ABC reports ARN had received a letter from Henderson’s lawyers detailing bullying examples and had been aware of complaints since December 2025.
- THEAGE/SMH describe Sandilands’s on-air insults toward ARN’s CEO as part of ARN’s defence, but ABC focuses more on Henderson’s bullying claims as the primary issue.
Source Articles
Kyle Sandilands repeatedly bullied colleagues, countersuit alleges
The company that broadcast the Kyle and Jackie O Show has launched a counter claim against the duo seeking damages for breach of contract, losses in profit and advertising revenue, and legal costs.
‘No power’: Network’s stunning Kyle defence
Kyle and Jackie O’s former network has filed its defence after the two stars sued the network, with the company making one big claim about bullying allegations.
KIIS turns tables on Kyle and Jackie O, sues pair for millions
The radio station has filed a letter with the Federal Court from Jackie “O” Henderson’s lawyers alleging Kyle Sandilands systematically bullied her as it defends contract claims from both stars.
KIIS turns tables on Kyle and Jackie O, sues pair for millions
The radio station has filed a letter with the Federal Court from Jackie “O” Henderson’s lawyers alleging Kyle Sandilands systematically bullied her as it defends contract claims from both stars.