Ex-Viacom shareholders can sue Shari Redstone over ViacomCBS merger

A Delaware judge ruled this week that former Viacom shareholders may pursue a lawsuit accusing Shari Redstone of engineering a “patently ...



A Delaware judge ruled this week that former Viacom shareholders may pursue a lawsuit accusing Shari Redstone of engineering a “patently unfair” merger that created ViacomCBS so she could become a media magnate like her late father, Sumner Redstone.

Vice Chancellor Joseph Slights of the Delaware Chancery Court said it was reasonable to infer from the plaintiffs’ claims that the December 2019 merger was “not entirely fair,” and that Redstone used it “to consolidate her control of Viacom and CBS at the expense of the Viacom minority stockholders.”

Shari Redstone’s National Amusements Inc had controlled about 80 percent of the voting power of both Viacom and CBS, despite owning about 10 percent of the respective shares.

Viacom shareholders, led by the California Public Employees’ Retirement System, the largest US public pension fund, accused Redstone of relentlessly pursuing a merger to advance her interests, including by replacing “subversive” directors with friends and relatives to get her way.

In his 76-page decision, Slights let the shareholders pursue breach of fiduciary duty claims against Redstone, National Amusements and Viacom directors who negotiated the merger.

He dismissed the same claim against ViacomCBS Chief Executive Bob Bakish, finding no evidence of wrongdoing and saying it appeared Bakish “deliberately chose not to flaunt his power as chief executive.”

ViacomCBS’ businesses include CBS television, CBS News, Showtime, Comedy Central, MTV, Nickelodeon and the Paramount movie studio. Redstone is the New York-based company’s non-executive chairman.

Slights’ decision is dated Tuesday. Lawyers for the defendants and the shareholders did not immediately respond on Thursday to requests for comment.

ViacomCBS is not a defendant. A related lawsuit by former CBS shareholders against Redstone, National Amusements and former CBS directors is pending in the Delaware court.

The ViacomCBS merger followed unsuccessful merger attempts in 2016 and 2018. Sumner Redstone had split the companies at the beginning of 2006. He died on Aug. 11 at age 97.

Source link

COMMENTS

Name

Africa,726,Americas,3900,Art & Culture,14207,Arts,6330,Arts & Design,1521,Asia,3111,Automobile,414,Baseball,500,Basketball,398,Books,3722,Business,5163,Celebrity,2589,Cricket,602,Crime,119,Cryptocurrency,1386,Dance,586,Defense,794,Diplomatic Relations,2448,Economy,1005,Editorial,260,Education,1114,Elections,290,Energy & Environment,2986,Entertainment,22069,Environment,3466,Europe,4060,Faith & Religion,205,Family & Life,772,Fashion & Style,3082,Finance,18947,Food & Drink,3572,Football,1023,Games,73,Gossip,10243,Health & Fitness,3913,Health Care,868,Hockey,181,Home & Garden,877,Humour,948,Latin America,49,Lifestyle,16206,Media,489,Middle East,1396,Movies,1581,Music,2482,Opinion,2728,Other,11209,Other Sports,4864,Political News,11229,Political Protests,2276,Politics,17263,Real Estate,1683,Relationship,63,Retail,3067,Science,2469,Science & Tech,9473,Soccer,159,Space & Cosmos,273,Sports,11376,Technology,3265,Tennis,502,Theater,1558,Transportation,274,Travel,2437,TV,3526,US Sports,1431,Video News,3531,War & Conflict,1022,Weird News,953,World,15542,
ltr
item
Newsrust: Ex-Viacom shareholders can sue Shari Redstone over ViacomCBS merger
Ex-Viacom shareholders can sue Shari Redstone over ViacomCBS merger
https://nypost.com/wp-content/uploads/sites/2/2020/12/shari-redstone-viacomcbs-lawsuit.jpg?quality=90&strip=all&w=1200
Newsrust
https://www.newsrust.com/2021/01/ex-viacom-shareholders-can-sue-shari.html
https://www.newsrust.com/
https://www.newsrust.com/
https://www.newsrust.com/2021/01/ex-viacom-shareholders-can-sue-shari.html
true
732247599994189300
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content