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Former CBS shareholders can sue Shari Redstone over ViacomCBS merger By Jonathan Stempel
FILE PHOTO: Shari Redstone (L) pictured after a court hearing in 2016
(Reuters) – A Delaware judge on Wednesday said former CBS shareholders may pursue a lawsuit accusing Shari Redstone, the daughter of late media magnate Sumner Redstone, of pressuring the company into entering an unfair merger that created ViacomCBS Inc.
Vice Chancellor Joseph Slights of the Delaware Chancery Court ruled four weeks after allowing former Viacom shareholders to pursue similar claims.
In a 157-page decision, Slights said it was reasonable to infer that the merger process was not fair and CBS “substantially” overpaid for Viacom.
Judge Rules Former CBS Shareholders Can Sue Over ViacomCBS Merger
A Delaware judge on Wednesday said former CBS shareholders may pursue a lawsuit accusing Shari Redstone, the daughter of late media magnate Sumner Redstone, of pressuring the company into entering an unfair merger that created ViacomCBS Inc.
Vice Chancellor Joseph Slights of the Delaware Chancery Court ruled four weeks after allowing former Viacom shareholders to pursue similar claims.
In a 157-page decision, Slights said it was reasonable to infer that the merger process was not fair and CBS “substantially” overpaid for Viacom.
Redstone’s National Amusements Inc had controlled about 80% of the voting power of both Viacom and CBS, despite owning only about 10% of the respective shares.
Former Viacom shareholders can sue Shari Redstone over ViacomCBS merger
12/31/2020 | 03:38pm EDT
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(Reuters) - A Delaware judge ruled this week that former Viacom shareholders may pursue a lawsuit accusing Shari Redstone of engineering a patently unfair merger that created ViacomCBS Inc so she could become a media magnate like her late father, Sumner Redstone.
Vice Chancellor Joseph Slights of the Delaware Chancery Court said it was reasonable to infer from the plaintiffs claims that the December 2019 merger was not entirely fair, and that Redstone used it to consolidate her control of Viacom and CBS at the expense of the Viacom minority stockholders.