Judge Rules Former CBS Shareholders Can Sue Over ViacomCBS Merger


Court Policy Former CBS Shareholders Can Take Legal Action Against Over ViacomCBS Merging

A Delaware court on Wednesday claimed previous CBS investors might go after a claim charging Shari Redstone, the little girl of late media tycoon Sumner Redstone, of pressing the business right into going into an unjust merging that produced ViacomCBS Inc.

Vice Chancellor Joseph Slights of the Delaware Chancery Court ruled 4 weeks after enabling previous Viacom investors to go after comparable insurance claims.

In a 157-page choice, Discourtesies claimed it was affordable to presume that the merging procedure was unfair as well as CBS “substantially” paid too much for Viacom.

Redstone’s National Amusements Inc had actually regulated concerning 80% of the ballot power of both Viacom as well as CBS, in spite of having just concerning 10% of the particular shares.

Discourtesies claimed the complainants’ insurance claims “allow a reasonable inference that CBS’s acquisition of Viacom was motivated not only by Ms. Redstone’s concerns about Viacom’s viability as a going concern, but also her desire to shop NAI following their consolidation.”

He claimed the proof recommended that CBS supervisors may have accepted the merging to “appease” Redstone, that had a “dogged determination to make this deal happen one way or the other.”

Attorneys for Redstone, the previous CBS supervisors as well as the investors did not right away reply to ask for remark.

Redstone is non-executive chairman of New York-based ViacomCBS, whose companies consist of CBS tv, CBS Information, Outset, Funny Central, MTV, Nickelodeon as well as the Paramount animation studio.

The merging complied with not successful merging efforts in 2016 as well as 2018. Sumner Redstone had actually divided the firms at the start of 2006. He passed away in August at age 97.

In an afterthought, Discourtesies priced estimate from “A Dance with Dragons,” a 2011 story by George R.R. Martin, several of whose jobs were adjusted right into the hit HBO collection “Game of Thrones.”

He claimed the CBS as well as Viacom investors’ “competing claims of unfairness call to mind the author’s reference to the adage: ‘A fair bargain leaves both sides unhappy.’ Whether the adage proves true here remains to be seen.”

The situation remains in re CBS Corp Investor Course Activity as well as By-product Lawsuits, Delaware Chancery Court, No. 2020-0111.

( Coverage by Jonathan Stempel in New York City Modifying by Matthew Lewis)

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