ARN Media has confirmed that Jacqueline Henderson and her related company has commenced legal proceedings against it, with claims including adverse action, contract repudiation and misleading market disclosures.
The proceedings have been filed in the Federal Court against Commonwealth Broadcasting Corporation (CBC), an ARN subsidiary and licence holder for KIIS 1065 Sydney.
Claims relate to contract termination
In its ASX announcement today, ARN said the applicants allege that the termination of Henderson’s contract constituted adverse action under the Fair Work Act.
According to the filing, in February, Henderson sent a complaint letter to CBC stating she “cannot continue to work with Mr Kyle Sandilands”, and raised psychosocial health and safety and bullying concerns relating to Sandilands’ conduct on and prior to an on-air dispute on 20 February 2026.
The applicants claim that the complaint involved the exercise or proposed exercise of workplace rights, and that the contract was terminated by ARN as a result in an alleged contravention of section 340 of the Fair Work Act.
Henderson and her company also allege the termination amounted to a repudiation of the agreement.
Jackie Henderson’s compensation claim exceeds $82m
The applicants further allege that ARN’s ASX announcement dated 3 March 2026 contained misleading and deceptive statements under the Australian Consumer Law.
They are seeking compensation of “at least $82,250,000”, along with a pecuniary penalty, interest and costs.
ARN said it disputes all claims and intends to defend the proceedings.
The company added that, given the early stage of the matter, it is unable to reliably estimate the outcome or any potential financial impact.
ARN’s separate dispute involving Sandilands
Sandilands is independently suing ARN and its subsidiary, Commonwealth Broadcasting Corporation, alleging that his contract was terminated without valid grounds and in breach of the Australian Consumer Law.
That case relates to ARN’s decision to terminate Sandilands’ contract last week, after he had been taken off air since the February 20 dispute.
During the exchange, Sandilands told Henderson during their live show that she was “off with the fairies.” Henderson left the studio almost immediately, telling Sandilands she would “never say things like that” about him.
ARN subsequently issued Sandilands with a two-week deadline to address what it described as “serious misconduct” before terminating his contract when that deadline expired.
In court filings, Sandilands’ legal team argued the exchange was consistent with the program’s established tone.
“The exchange was congruent with the style, tone and nature of the Show and the robust character that [ARN] ‘desired’.”
His lawyers also argued that even if a breach had occurred, he was not given a reasonable opportunity to remedy it.
Sandilands claims he is still owed more than $85 million under the deal agreed in 2023.
Legal documents filed with the court set out the financial terms of Sandilands’ agreement, including a $7.4 million base salary, a $120,000 annual flight allowance, $500,000 in advertising for his products, a $200,000 consultancy fee, and sublicensing fees to his company, Quasar Media, worth $2 million annually.