×
You will be redirected back to your article in seconds

CBS Agrees to $1.25 Million Settlement in Sumner Redstone Pay Suit

CBS has agreed to pay $1.25 million to settle a shareholder lawsuit which accused the company of paying millions to former chairman Sumner Redstone after he was incapacitated by illness.

The suit was filed in Delaware Chancery Court in July 2016 on behalf of shareholder R.A. Feuer. It accused the CBS board of directors of improperly paying Redstone $13.5 million in salary and bonuses since 2014.

At the time, Redstone’s health had badly deteriorated, and he was barely able to communicate. Redstone, who is now 95, resigned as chairman in February 2016. He continued to receive a $1 million salary as chairman emeritus, which was subsequently reduced to $50,000 a year in July 2017.

In a ruling in April 2018, Chancellor Andre Bouchard threw out the shareholder claims regarding Redstone’s $9 million bonus paid in 2014. However, the ruling allowed the claims to proceed accusing CBS’s directors of breaching their fiduciary duty by paying $4.4 million in salary to Redstone. The suit also accused Redstone of unjust enrichment for receiving the $1 million salary as chairman emeritus. That claim also was allowed to go forward.

In a settlement filed Friday, CBS’s insurer will pay $1.25 million to resolve the dispute. The funds will go back into CBS’s general coffers, not to shareholders.

Under the agreement, the CBS directors and Redstone do not admit to wrongdoing, and are not obliged to pay anything personally.

Redstone remains chairman and CEO of National Amusements Inc., which owns nearly 80% of the voting stock of CBS and Viacom.

More TV

  • Sacha Baron Cohen

    Why Sacha Baron Cohen Credits Donald Trump for ‘Who Is America?’

    Over the course of history, comedians have shared their take on current events with biting commentary on everything from class and gender to fashion and politics, and the current presidential administration is definitely no exception — with President Donald Trump regularly lampooned on shows like “Saturday Night Live” and by late-night TV hosts. But when [...]

  • Susan Rovner, Brett Paul Named Presidents

    Susan Rovner, Brett Paul Named Presidents of Warner Bros. Television

    Longtime television executives Susan Rovner and Brett Paul have been tapped to become presidents of Warner Bros. Television, ascending from their most recent roles as executive VPs of the studio. This means that they will continue to do double duty, simultaneously serving as presidents of Warner Horizon Scripted Television, roles they have occupied since 2014. [...]

  • Netflix Orders Japanese Animated Series 'Dino

    Netflix Orders Animated Series 'Dino Girl Gauko' From Japan (EXCLUSIVE)

    Netflix has ordered a new kids animated series, “Dino Girl Gauko,” Variety has learned. The program is from creator and showrunner Akira Shigino, who previously served as a director on a number of popular Japanese animated TV series, including “Crayon Shin-chan,” “Line Town,” “Osomatsu-kun,” and a remake of “Yatterman.” The comedy series is set in [...]

  • TV Ad Sales Upfronts

    TV's Upfront Market May Be More Complex Than Networks Expected (EXCLUSIVE)

    TV’s “upfront” ad-sales market has started to simmer. What will be required to bring it to full boil? TV networks and media buyers hope to answer that question in coming weeks – if not days. In this annual market for advance commitments to buy commercial time, Madison Avenue and TV sales executives haggle over the [...]

  • The Rook

    'The Rook,' Shondaland, Ted Sarandos Among Programming for SeriesFest 2019 (EXCLUSIVE)

    The fifth edition of SeriesFest will deliver panels and programming designed to celebrate individual talent as well as companies who are “taking creative risks and leveraging advances in technology to reimagine storytelling.” On the linup is Starz’s upcoming supernatural thriller “The Rook,” a panel with the creatives behind Shondaland, a look at LGBTQ representation on [...]

More From Our Brands

Access exclusive content