ARN Media Faces $85M Lawsuit From Jackie O Over Unfair Dismissal on August 29

Radio host Jackie O Henderson is suing ARN Media for approximately AUD 85 million over alleged unlawful dismissal following an on-air conflict with co-host Kyle Sandilands on February 20, 2026. Federal Court hearings on Friday revealed that ARN executives called the incident “serious bullying” while it was still broadcasting, yet the company later terminated both presenters’ decade-long AUD 100 million contracts in March. Henderson claims she exercised a legitimate workplace right by refusing to continue working with Sandilands after the clash.

The on-air clash that sparked the lawsuit

During the February 20 broadcast, Sandilands told Henderson she was “off with the fairies” while criticising her interest in astrology. Henderson became close to tears and later told ARN management she could no longer work with Sandilands. Internal emails read in court show an ARN chief people officer wrote in real time: “What happened on air 15 minutes ago between Kyle and Jackie is not okay. There is serious bullying and harassment in the workplace.” Both presenters were dismissed in March 2026.

Henderson’s claim versus ARN’s defence

Henderson alleges she was unlawfully sacked after exercising a workplace right to refuse continued work with Sandilands. Her lawyer Vanja Bulut told the Federal Court that ARN offered her only a AUD 2 million annual afternoon drive show role, one-fifth of her previous earnings. ARN argues Henderson should have accepted the offer or negotiated further. The company is also defending the claim by alleging Henderson misused a workplace right, and has filed a counterclaim seeking damages for breach of contract and lost profits.

Sandilands settles, Henderson fights on

Kyle Sandilands reached a settlement with ARN for AUD 12 million in June 2026 and has since launched a paid online show. On August 28, Sandilands broke down on air discussing the fallout, saying he cannot stop thinking about Henderson’s allegations and that the saga is affecting his personal life. The substantive hearing of Henderson’s case is scheduled for October 2026 in Federal Court.

The unusual exorcism detail

Court documents revealed that Henderson withdrew a September 2025 bullying complaint after three months, claiming she believed the issue had been resolved through spiritual assistance. ARN’s amended cross-claim states Henderson “believed the issue had been resolved through her arranging for exorcists to clear Mr Sandilands’ demons.” ARN argued this reason was “not a rational one,” adding weight to its counterclaim that Henderson misused her workplace right protections.

Final Thoughts

With Henderson seeking AUD 85 million and ARN defending on grounds of misused workplace rights, the October trial will test whether on-air conflict and subsequent dismissal constitute unlawful termination or legitimate business response. The case highlights tensions between workplace protections and media industry dynamics.

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