CBS Hit With Shareholder Suit
December 15, 2008 at 6:53 AM (PT)
CBS CORPORATION and four executives, including CEO LES MOONVES, have been hit with a shareholder lawsuit alleging false and misleading statements made before the company took a $14 million charge in OCTOBER.
DOW JONES reports that the suit, which seeks class action status, was filed by law firm COUGHLIN STOIA GELLER RUDMAN AND ROBBINS LLP on behalf of the CITY OF PONTIAC, MI GENERAL EMPLOYEES' RETIREMENT SYSTEM and charges that "As a result of these materially false and misleading statements and failures to disclose, CBS common stock traded at artificially inflated prices during the class period. Plaintiff and other members of the class purchased or otherwise acquired CBS common stock relying upon the integrity of the market price of CBS common stock and market information relating to CBS, and have been damaged thereby."
The company's response was a statement saying, "CBS has just been served with the lawsuit. Based upon the filing, this appears to be a poorly stated lawsuit with no basis in fact whatsoever, and totally lacking in merit. CBS intends to defend this lawsuit in the most vigorous manner and seek its dismissal."