Following E!'s Dirty Rotten Scandals docuseries, Hallstrom spoke with People to talk about the issues that occurred after Dian Parkinson's affair with Barker became a public blowout. As Parkinson's filed a lawsuit against the TV host for sexual harassment, Hallstrom was one of the employees asked to testify, and she refused.
"I was on his s--t list and I knew it," Hallstrom told People. "I refused to testify in court, to commit felony perjury for him. That was the final straw, but it's against the law to fire an employee for failing to testify on your behalf in a court of law. So they could not fire me for that."
To her surprise, Barker came up with another excuse to get her off the show by stating she was "overweight." She even brought it up when asking for the reasoning behind her firing, and it led to Barker going on the defensive as he got hate mail from fans after Hallstrom left.
Things only got worse after Parkinson dropped her lawsuit against Barker, and he zoomed in on the Hallstrom. He wanted her gone, with the lawyers negotiating terms for her retirement, despite her insistence that she wasn't ready to retire. Ultimately, Hallstrom left "after nearly 20 years on the show. I was devastated."
Hallstrom explains that things got worse when she refused to accept the settlement and sign the non-disclosure agreement. She exposed the truth on Hard Copy and led Barker to file a defamation lawsuit that wiped her out financially. He dropped the lawsuit before it went to trial, and Hallstrom filed for malicious prosecution that ended in a settlement.
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