Shareholder suit targets Viacom, CBS payments to Redstone

AP News
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Posted: Jan 19, 2016 7:23 PM

DOVER, Del. (AP) — A shareholder of Viacom and CBS is suing the boards of the two media companies over payments to chairman Sumner Redstone.

The lawsuit, filed Tuesday in Delaware Chancery Court, says company directors breached their fiduciary duties to shareholders by allowing millions of dollars to be paid to Redstone while he was physically and mentally incapacitated and unable to carry out his duties as chairman.

The lawsuit comes after a former companion and caretaker of Redstone claimed in a California lawsuit that he is no longer mentally competent and that a signature on recent documents appears to be forged.

Viacom said in a statement that the Delaware lawsuit is without merit and the company intends to fight it vigorously.

A spokeswoman for CBS declined to comment.