Shareholder Suit, Critical Slideshow Take Aim At Viacom, CBS Boards, Sumner Redstone
January 20, 2016 at 3:59 AM (PT)
VIACOM and CBS CORPORATION board members have been hit with a shareholder lawsuit over questions about whether Chairman SUMNER REDSTONE is in control of the companies.
The LOS ANGELES TIMES reports that E.F. GREENBERG has filed the suit in DELAWARE against REDSTONE, VIACOM CEO PHILIPPE DAUMAN, CBS CEO LES MOONVES, and REDSTONE's daughter SHARI REDSTONE, Vice Chair of the companies. The suit alleges that the boards have covered up REDSTONE's deteriorating condition and have failed to formulate a succession plan, and challenges REDSTONE's compensation in 2012-2014. A spokesman for VIACOM called the suit "without merit."
VIACOM was also the subject of an online slide show created by ERIC JACKSON's SPRINGOWL ASSET MANAGEMENT criticizing VIACOM for its "lost decade" of poor stock performance and alleged mismanagement. The slide show calls VIACOM's board "too large, too cozy, and too overpaid for under performance" and calls for REDSTONE, DAUMAN, and COO THOMAS DOOLEY to be replaced. See the slide show here.