The cancellation followed a breakdown in relations between Sandilands and co-host Jackie 'O' Henderson, triggered by an on-air argument in February. According to multiple reports, the argument occurred while discussing Andrew Mountbatten-Windsor's arrest, when Henderson wanted to look up his horoscope. Sandilands accused Henderson on air of being 'off with the fairies' and said her interest in horoscopes and astrology made her 'almost unworkable'.
Henderson has launched legal action claiming compensation of at least $82,250,000 for wrongful termination of her 10-year contract. She said she cannot continue to work with Kyle Sandilands and would not present the radio show anymore. Henderson's legal claim says the termination constituted adverse action and involved misleading and deceptive statements by ARN.
ARN's court defense alleges Sandilands berated Kiis FM executives, censors, critics, and the Melbourne audience in expletive-laden rants. The defense claims Sandilands called activist group Mad Fucking Witches 'dangerous lunatics' and referred to ARN executives as 'pussies'. According to The Guardian - World, Sandilands described having private investigators follow members of the group. He also allegedly denigrated the Melbourne audience and threatened to pull the show from the city.
To date ARN management have been unwilling or unable to control the content that has gone to air.
The Australian Communications and Media Authority imposed additional licence conditions on KIIS FM Sydney and Kiis FM Melbourne for five years due to repeated breaches of decency provisions. Acma chair Nerida O'Loughlin said ARN management have been unwilling or unable to control the content that has gone to air. ARN acknowledged and respects Acma's decision and said it will review and consider options, having taken steps to ensure compliance.
Sandilands described the incident as a routine on-air disagreement and said he and Jackie had similar arguments many times over 25 years. He apologized to Henderson, saying he said things he wished he had said differently and sent her a message that evening expressing regret. Sandilands accused ARN of escalating the dispute unnecessarily and not running a genuine process when they suspended him.
ARN disputes Henderson's claims and will defend the proceedings. Sandilands rejected the termination and said the network would have to 'pay the legal consequences'. The specific actions constituting the 'serious misconduct' cited by ARN remain unclear, as do the potential outcomes of the legal actions.