Air America To Settle Lawsuit

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

Air America Radio has reached agreement on terms that would settle a lawsuit brought by Multicultural Radio Broadcasting, according to representatives from both companies. The terms of the settlement were undisclosed, and a formal agreement had yet to be signed.


The settlement would terminate a lawsuit filed with the New York Supreme Court in May, in which Multicultural was seeking more than $1.5 million in damages from the liberal radio network. The complaint said that Multicultural aimed to recover debts that were amassed by Air America soon after its launch in April 2004, and the cost of attempting to recover those debts in a 19-month legal battle.


An attorney representing Multicultural, Randy Mastro of Gibson, Dunn and Crutcher, said yesterday, “The client is very satisfied with the terms.”


Air America, whose most prominent talk radio host is comedian and political pundit Al Franken, agreed in early 2004 to lease airtime on two of Multicultural’s affiliates in Chicago and Los Angeles, which are among the country’s largest radio markets. According to Multicultural’s complaint, Air America failed to pay more than $100,000 in air lease payments in April 2004. This prompted Multicultural’s affiliates in Chicago and Los Angeles to take Air America programming off the air.


In May 2004, Air America’s board members learned of alleged financial improprieties and mismanagement by the network’s director, Evan Montvel Cohen. This prompted board members to transfer ownership from Radio Free America and Progress Media, owned and controlled by Mr. Cohen and his partner Rex Sorensen, to Piquant LLC, the network’s current owner. According to Mr. Mastro, the transfer of ownership was a “sham” intended to maintain the network’s assets while deceiving its creditors, including Multicultural.


In November 2004, the New York Supreme Court ruled that the prior owners of Air America, Radio Free America, owed $255,000, plus interest, to Multicultural. According to the complaint, the new owners of Air America, Piquant, had not paid the old debts.


In the suit filed in May 2005, Multicultural sought to claim its damages from Piquant, charging it had conducted a “fraudulent conveyance” of ownership. They sought a maximum of about $1.5 million in damages, which included the outstanding airtime lease payments for both the Chicago and Los Angeles stations, rent for studio space and equipment, lawyers’ fees, and interest.


As part of the now settled suit, Mr. Mastro referenced an ongoing probe by the city’s Department of Investigation, in conjunction with the state attorney general’s office, into allegations of “inappropriate transactions” by the Gloria Wise Boys & Girls Club in the Bronx that included the transfer of $875,000 to Air America.


At the time of the transfers, Air America was run by Mr. Cohen, who simultaneously served as the development director for the boys and girls club. Mr. Cohen and Air America cut ties in May 2004. In September, Air America wired money into an attorney-controlled escrow account to be handed over to the boys and girls club when the Department of Investigation completes its inquiry and authorizes payment.


The New York Sun

© 2025 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  Create a free account

or
By continuing you agree to our Privacy Policy and Terms of Use