Court Nixes Shareholder Suit Over CBS Corp. Write-Down
May 14, 2012 at 4:22 AM (PT)
A shareholder lawsuit brought against CBS CORP. by the city of OMAHA and two state pension funds over a $14 billion write-down in 2008 has been dismissed by a federal appeals court, upholding a 2011 lower court ruling.
The suit alleged that CBS executives, including Chairman SUMNER REDSTONE and CEO LES MOONVES, committed securities fraud by failing to test the charge for impairment of goodwill earlier in 2008. A three-judge panel of the Second U.S. Circuit Court of Appeals ruled that the plaintiffs did not show sufficient cause for the fraud claim.