Secured $167.5 million settlement for CBS shareholders in challenge to Redstone-controlled merger with Viacom
Plaintiff(s):
Shareholders of CBS Corporation
Case type / claims:
Derivative and class action alleging breaches of fiduciary duty, corporate waste, and unjust enrichment arising from the forced merger of CBS and Viacom. Plaintiffs argued that the merger, driven by the Redstone family’s dual control of both boards, unfairly burdened CBS shareholders with Viacom’s underperformance.
Defendant(s):
Leslie Moonves, CBS Board of Directors, and Shari Redstone
Jurisdiction:
Delaware Chancery Court
Year:
2021
Outcome:
- $167.5 million settlement for CBS shareholders.
- Case spotlighted governance risks of overlapping board control and conflicts of interest in mergers.
- One of the largest recoveries of its kind in a Delaware corporate governance action.
