Lawsuit Refiled Against SBS Claims 'Illegal Payola Scheme'
October 20, 2016 at 3:42 AM (PT)
A report in mid-SEPTEMBER (NET NEWS 9/19) noted that according to a lawsuit filed at that time, SPANISH BROADCASTING SYSTEM Regional Mexican KLAX (97.9 LA RAZA)/LOS ANGELES, "made musicians pay $5,000 if they wanted their songs played on the station." Former personality STEPHANIE HIMONIDIS, known as "CHIQUIBABY," claims that she and her husband GERARDO LOPEZ were fired after objecting to an illegal payola scheme.
Now, COURTHOUSENEWS.COM updates the story, reporting the suit has been refiled by HIMONDIS and LOPEZ. "The couple claim that SBS 'demanded that Mr. LOPEZ engage in an illegal payola scheme' as part of his job. 'SBS demanded five thousand dollars ($5,000) in payment from musicians in exchange for one play of one song on the air per station,' the complaint states."
The filing claims "SBS flat-out refused to play music on its stations if musicians refused to pay SBS's illegal 'fee' for the same. SBS in turn gave Mr. LOPEZ a monthly sales quota of five (5) music spots, i.e., SBS required Mr. LOPEZ to illegally sell and collect from musicians at least five such 'fees' each month, per station, per month, which would yield at least $50,000 per month of $600,000 per year in illegal revenue to SBS."