Shari E. Redstone, National Amusements Inc. and an NAI affiliate won a partial victory Friday in a Delaware Superior Court battle over potential partial insurance coverage for payouts in CBS-Viacom merger challenges that recently produced a $289.5 million pair of tentative Chancery Court stockholder settlements.
CBS investors who want Cleary Gottlieb Steen & Hamilton LLP to turn over an email sent by media mogul Shari E. Redstone regarding the network's $30 billion merger with Viacom in 2019 have told the Delaware Chancery Court that the email was not a privileged communication and should be produced.
Cleary Gottlieb Steen & Hamilton LLP is fighting a bid by investors in two Delaware Chancery Court suits filed over CBS's $30 billion acquisition of Viacom for the firm to produce an email sent by media mogul Shari E. Redstone seeking legal advice on the merger.
Court of Chancery Orders Production of Emails, Denies Production of Privileged Communications in Books and Records Action
Emps.’ Ret. Sys. of R.I. v. Facebook, Inc.,
C.A. No. 2020-0085-JRS (Del. Ch. Feb. 10, 2021)
In a post-trial opinion, Vice Chancellor Joseph R. Slights III granted a stockholder’s request to inspect directors’ nonprivileged electronic communications, including emails, concerning settlement negotiations for the purpose of investigating whether Facebook overpaid in the settlement to protect its CEO, Mark Zuckerberg, from substantial personal liability.
In July 2019, in connection with a data breach, Facebook agreed to pay $5 billion to the Federal Trade Commission (FTC) in exchange for the release of claims against the company and Mr. Zuckerberg personally. Facebook stockholder Employees’ Retirement System of Rhode Island (ERSRI) sought books and records to investigate whether Facebook spent corporate assets to protect Mr. Zuckerberg. Facebook produced so