Viacom Board Battle Cases On Hold In Delaware Court
June 23, 2016 at 3:58 AM (PT)
A DELAWARE judge has merged the proceedings in dueling lawsuits over the VIACOM board controversy and has set a JULY hearing on whether SUMNER REDSTONE's NATIONAL AMUSEMENTS had the right to remove five members of VIACOM's board, and the board will stay in place for now while the matter is debated.
REUTERS reports that DELAWARE Chancery Court Judge ANDRE BOUCHARD on WEDNESDAY (6/22) brought together the suits filed by NATIONAL AMUSEMENTS to seek validation of its move and by lead independent director FREDERIC SALERNO to try to block his and the others' removal from the board and indicated that the case involves "underlying issues of (REDSTONE's) competency that might be relevant" and that he would not weigh in on the issue while it is being handled in another court, specifically in VIACOM CEO PHILIPPE DAUMAN and director GEORGE ABRAMS' suit against REDSTONE in MASSACHUSETTS.
The parties told BOUCHARD that they are working towards agreement later this week to leave VIACOM's board in place but prohibit directors from doing anything beyond the day-to-day operation of the company, blocking the disputed sale of a minority stake in PARAMOUNT PICTURES while the board member removal matter is in court.