The claim ARN gave a misleading statement to the ASX when announcing the pair's hit show was over is part of Henderson's blockbuster legal showdown with the radio giant, set for trial in October.
The 51-year-old says her $100 million contract was unlawfully terminated after Sandilands accused her of being "off with the fairies".
On March 3, ARN published a statement to investors saying Henderson indicated she could not work with Sandilands and the long-running show would end.
"ARN Media Limited announces Ms Jacqueline Henderson has given notice that she 'cannot continue to work with Mr Kyle Sandilands'," the statement read.
"Accordingly, ARN has terminated the services agreement with Henderson Media Pty Ltd, under which Ms Henderson presents the Kyle and Jackie O show."
But not including the context of psychological damage Henderson sustained from Sandilands's repeated attacks meant the statement was misleading, Henderson alleged in court documents published on Tuesday.
ARN claimed an expert psychiatrist diagnosed Henderson with post-traumatic stress disorder as a result of bullying sustained from Sandilands.
The radio giant defended its ASX statement, saying the 51-year-old had sworn them to secrecy.
"If (which is denied) any loss or damage was suffered ... that loss or damage was caused by Ms Henderson's insistence those matters be kept confidential," the company said in fresh documents.
In a reply to ARN's claim, Henderson slammed ARN's version of events as embarrassing.
"It is wholly illogical in circumstances where there is no causal link ... between Ms Henderson's insistence on confidentiality and the content of ARN's ASX announcement," Henderson's submission said.
An amended cross-claim filed by ARN said Henderson and Sandilands' defection threats drove up the price on bumper deals they signed.
In June 2023, Henderson told ARN the star pair had a formal offer from rival Southern Cross Austereo to host a breakfast show on one of its networks, the company's claim read.
After receiving the offer, the duo re-entered negotiations with ARN that concluded with the signing of 10-year contracts worth $100 million each.
Sandilands settled his case with ARN in June, receiving a $12 million payout.
Since leaving the commercial airwaves, the shock jock has started a paywalled podcast Kyle Sandilands Live which has been criticised for an uptick in controversial and sexualised content.
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