The Radio Equalizer: Brian Maloney

20 August 2005

Inside Air America Extra: Lizz Winstead Case

Inside Air America

An Investigative Blog Report


BY BRIAN MALONEY AND MICHELLE MALKIN



Lizz Who? Did She Work Here?



On May 20, 2005, comedian Lizz Winstead filed suit in New York, detailing a laundry list of allegations against Air America Radio parent Piquant LLC.

Accusing the company of failing to pay wages, promotional fees, accrued holiday compensation and severance, Winstead is seeking $290,716, plus interest.

You can download her entire complaint here.

Does the company's behavior toward her help to demonstrate a pattern of ethics and integrity lapses in its overall business dealings?

Beyond the allegedly withheld payments, it must have been an especially bitter experience. After all, she was Air America's first "creative" hire, joining in 2003, when the network was little more than an a cocktail napkin idea.

In addition, there's little doubt Winstead's biggest shock came on July 5th, when Air America's legal response was filed. It's disclosed to the public for the first time here, along with many previously unreported details.


'Daily Show' Brought Success


After a bumpy career path, Winstead found major success as co-creator of "The Daily Show With Craig Kilborn", but departed in early 1998, after Kilborn made apparently offensive public remarks about her. Later, she appeared in guest spots on other programs.

It seems clear Winstead was utilized in dual programming and on-air roles at Air America. Published reports from early 2004 listed her in both, here and here. Mediaweek noted she'd been programmer and host, in this blurb regarding her exit.

It's not known what was in her original employment agreement, or for which programming decisions Winstead may have been responsible (other than her own "Unfiltered"). One thing isn't in dispute: on May 24, 2004, she agreed to sign a release supplied by the company.

What exactly it was intended to cover is exceptionally confusing. Winstead believed it to be a release of monetary claims against Progress Media, so Piquant could take it over, without facing demands for unpaid compensation.

But wait a second-- Air America's party line is that Piquant merely purchased the assets of Progress Media, not its liabilities. Why the worries, then, about past claims being brought against the new company?

Perhaps Air America/Piquant contradicted itself. If it was strictly an asset sale, as they claim, there should have been no reason to force air talent to sign releases. Does this bolster Multicultural Radio's "sham transaction" legal theory, as they seek to recover over a million dollars in a separate complaint?

After May 24th, 2004, Winstead believed her previous employment terms remained, with an annual management salary of $250,000, plus options, a potential bonus, profit-sharing, an AFTRA (American Federation of Television and Radio Artists) union-designated scale wage for her on-air duties ($225,000), less $50,000, for reasons not disclosed in her complaint.

Air America appeared to see things differently, however, taking the release to mean a wiping out of her previous agreement. Winstead asserts Piquant paid her only the management salary and as a result, didn't report her wages to AFTRA.

As an on-air host, Winstead provided promotional endorsements for the Vermont Teddy Bear Company. In talk radio, such compensation is often paid by the advertiser directly to the host, but Air America instead billed the firm. She says they never passed the money along.

In addition, she contends severance and holiday pay were not paid, bringing the total figure requested to $290,716, plus interest.

Repeated attempts to contact Winstead for comment have not been answered. Air America hasn't responded to our requests for information on any subject.


Air America's Bizarre Answer


Winstead must have had quite a shock when she received the company's July 5th response (was it filed within the 20 days allowed by law? We're not sure).

Air America's answer to her complaint (download it here) couldn't have been more bizarre. Coming from the firm of Beldock, Levine and Hoffman LLP, rather than their usual representatives at Latham & Watkins LLP, it contained strange and seemingly contradictory assertions.

Weirdest of all: Air America Radio now officially denies Lizz Winstead ever served in a management capacity!

Here's a portion of Air America's answer:

Almost as strange: Winstead essentially worked for Piquant for nearly a year, drawing just the management salary, not the other for serving as "Unfiltered" co-host.

Did she get increasingly vocal about the situation? Is that why she alone was fired, while her two co-hosts were reassigned?

Key is her contention that wages weren't reported to AFTRA, a likely indication remaining pay corresponded to her administrative duties.

If Winstead was paid a management salary, how can they now say she never served in that role?

And why did they believe her signed release, combined with the transfer from Progress to Piquant, meant her previous employment agreement was null and void?

When filing suit, the other party's response isn't often predictable. Can you imagine the look on Winstead's face, however, when she first saw their answers?

It's clear Air America and its apologists would like to rewrite history to make Winstead invisible.

In addition, it doesn't appear she will soon back down from her claims.

If she does win the case, however, will the company have any assets with which to repay her?

AAR Scandal/ Franken by Darleen Click.

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14 Comments:

  • Outstanding stuff....the pundit comments across the blogosphere are dead on. The top bloggers (you two included, perhaps at this point leading!) are the new investigative media.

    If I were a representative/ombudsman/writer, et al for the Grey Lady, or WaPo, I would be very very personally embarrased to be watching a major story with possible criminal action ahead instead of leading the charge to cover it from our "superior" (R-I-G-H-T!) position.

    Duke of DeLand

    By Blogger Duke of DeLand, at 20 August, 2005 09:34  

  • All of this makes me wonder whether AAR was merely a "throwaway" or "disposable" organisation, not meant to last much beyond the 2000 american election, if the democrats lost.

    The evidence keeps accumulating relating to mountains of fraud and falsehood from the AAR organisation. Whoever wants to sweep this under the rug should speak out loudly, because we all want to know who they are.

    By Blogger al fin, at 20 August, 2005 10:10  

  • al fin, if that was such a case then AAR sure put a hell of a face on to try and keep the station going by doing illicit stuff. Like taking $$$ away from inner city kids for summer camps. They had to save face because it's the "Rush Limbaugh radio station of the left." And it's true, completely 180 degrees along with no guilt about stealling money from kids, alzheimer patients, bouncing a few checks with large sums of money, hiring and firing a host, poor Al not getting his paycheck, cohen gone AWOL....etc.


    Brian Maloney, this stuff is just getting better and better (or for that matter worse and worse for AAR). You and Michelle Malkin keep up the good work.

    I would say that this be the "Blogory" of the year.

    By Blogger Mike, at 20 August, 2005 10:37  

  • Amen al fin.
    Previously I remarked on your excellent blog,
    "The theft occurred at the board level with all eyes on the crime and there will be other crimes exposed as well during the investigation. The restructure and sale was a conspiracy to cover up these crimes and keep the funds. All an elaborate shell game poorly conceived and executed by "the best minds in the world"!...
    "Where there's smoke there's fire".... Mark my words this is only the tip of the iceberg.


    I didn't have any absolute knowledge of this case other than the initial story uncovered and published by Brian and Michelle. What I did have is nearly four decades of experience dealing with hard core lefties and ossified hippies like Franken and Rhodes. My mother was one and a very politically active one at that. Their standard operating procedure is to skirt and break rules, especially when large amounts of money are involved. So the conclusion I came to was born out of that experience. Just remember this when you have to have any personal dealings with those on the left. They are rip-off artists who would sell their own mothers to pirates.

    By Blogger Beto_Ochoa, at 20 August, 2005 10:44  

  • "All of this makes me wonder whether AAR was merely a "throwaway" or "disposable" organisation, not meant to last much beyond the 2000 american election, if the democrats lost."

    al fin, I think you may have hit upon something. Perhaps the attempted continuation of AAR was pushed by nothing more than the on-air egos.

    By Anonymous Anonymous, at 20 August, 2005 11:13  

  • Murph:

    Exhibit A wasn't available at the courthouse for some reason. A second trip may be required.

    By Blogger Brian Maloney, at 20 August, 2005 11:37  

  • No, probably not, since they aren't the face of AirAmerica. Mr. Franken, however, is, and probably knows quite a bit about where the money went, unlike your condesendingly named "little Mary" and "Bob," who are simple employees.

    Obviously you haven't worked in radio, have you, Mick?


    Duh? He says he worked for the Navy.

    And he was asking questions, granted they were loaded questions, that you chose not to answer...probably because you don't know the answer. I'm curious about whether Al Franken has a stake in Air America aside from his profile and his employment. I don't know the answer but I think it would be good to know.

    By Blogger Joe Reilly, at 20 August, 2005 14:02  

  • Brian Maloney has a vendetta against Lizz Winstead because his wife went to high school with Lizz, and apparently has become insanely jealous of her success.

    By Blogger @whut, at 20 August, 2005 15:31  

  • No problem, Linn. You are absolutely right. Al Franken has never been as funny as the commenters here who are trying to make all this simply disappear.

    I like the idea of left wing radio. I used to listen to Radio Pacifica when I worked contracts on the american west coast. I just do not like unethical business practices being excused in the name of left wing radio.

    By Blogger al fin, at 20 August, 2005 17:28  

  • Why does Brian Maloney want to get into the personal life of a private person? Apart from the usual Repub urge to get in everyone's shorts, I'd say its pretty obvious.
    Lizz Winstead went to high school with Maloney's wife, and the henpecking has commenced. nag. nag. nag.

    By Blogger @whut, at 20 August, 2005 18:23  

  • Yes Mick it's true, my mom sold my grandma to pirates.

    By Blogger Beto_Ochoa, at 20 August, 2005 21:11  

  • Thanks Linn. Not only do you speak the truth but you draw out other people to expose themselves.

    Honestly, the stuff coming out of the "sweep it under the rug crowd" is a heck of a lot funnier than anything Al Franken ever did or said. I just hope they do not tire of the self-caricature.

    Brian, keep reporting whatever you find. Heaven knows the media up here will never report it, and it seems that your media down there is ideologically indisposed as well. Forget them. The bottleneck has been broken and thrown away.

    By Blogger al fin, at 21 August, 2005 06:37  

  • Of all the websites - or weblogs - that are dealing with Air Scamerica, I'd like to say that yours is the best and currently most dedicated of all, Brian, ditto Michelle's. Keep it up, it's great work you're doing!

    By Blogger Avi Green, at 21 August, 2005 15:19  

  • An extremely humorous piece. Two right wing Fox News HACKS trying to establish their identities. Very sad!!! I dare say that Michelle & this other HACK did not give the same coverage to Bill O'Reillys' little employee problem and "settlement". I have seen Michelle on youtube.com filling in apparantly for "Bill" and metaphorically licking him to death. Try to get a life and a real opinion.

    By Blogger Gary, at 18 May, 2007 13:57  

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