CBS to Pay $10 million in Arbitration to Wrongly Fired Executive
CBS is settling a lawsuit with a former executive staff member, Peter Dunn, who was ousted by the network for allegedly making racist and sexist comments in 2021.
At the time of his termination, several allegations covering a variety of offenses were aimed at Dunn, including “racist, sexist, homophobic and discriminatory,” statements and slurs, according to a former employee.
The New York Post reports that Dunn allegedly called a black newsman “a jive guy,” and said that another one was “too gay.”
Upon the news of these alleged remarks, Dunn was suspended, and eventually let go from CBS. This termination occurred without any investigation into the alleged remarks nor legitimate reason for letting Dunn go.
This termination was costlier for Dunn than it should’ve been. According to the New York Post, “When the investigation was completed four months later, CBS said it was converting Dunn’s termination to ‘for cause’ — which would strip him of millions owed in back pay and stock equity.”
After taking CBS to arbitration, a panel of retired arbitration judges found in early May that CBS violated Dunn’s employment contract by not distinguishing if his firing was “for cause” or “without cause.” The broadcasting company must now pay nearly $10 million in back pay and interest. The decision will now go the US Supreme Court.
Dunn’s lawyer, Larry Hutcher, told the Daily Beast that their legal efforts were not solely concerned with getting Dunn back his money: “This was never about just money,” Hutcher said. His reputation was destroyed, and this was about restoring that.” The lawyer also stated that Dunn’s termination was an effort to “appease the woke mob.”
A CBS spokesperson commented on the result of the settlement, defending its prior decision:
“Four years ago, we removed Peter Dunn as head of the CBS Television Stations for reasons that have been well documented and reported publicly.”
The network noted also that its decision “was not based on the substance of the allegations against Mr. Dunn.” CBS stands “by the findings of our third-party investigation and the decision made to terminate Mr. Dunn for cause. We’re grateful for the many voices who spoke up in a process that led to significant cultural change at our television stations.”
