Viacom CEO Dauman sues over removal from Sumner Redstone's trust
Reuters
Published May 23, 2016 17:45
Viacom CEO Dauman sues over removal from Sumner Redstone's trust
By Jessica Toonkel
(Reuters) - Viacom Inc (O:VIAB) Chief Executive Philippe Dauman filed a complaint Monday to stop Sumner Redstone from removing him and George Abrams from the media mogul's trust, Dauman and Abrams said in a statement Monday.
The seven-person trust will determine the fate of both Viacom and CBS Corp (N:CBS) in the event of Redstone's incapacitation or death.
The legal complaint, which also includes directors of National Amusements, was filed Monday in the Commonwealth of Massachusetts Probate and Family Court. It also seeks to invalidate the removal of Dauman and Abrams as directors of National Amusements, Redstone's privately-held movie theatre company.
"Shari Redstone is attempting to illegally hijack her father's well-established estate plan," Dauman said in a statement Monday morning. "We will continue to have great respect and affection for Mr. Redstone, but he is clearly being manipulated by his daughter, Shari."
The lawsuit is the latest in the battle for control between Dauman and Shari Redstone, who is vice chair of both Viacom and CBS and president and a director at National Amusements.
On Friday, Redstone, who turns 93 on Friday, removed both Dauman and Abrams from the trust and from the board of directors of National Amusements. He made the changes after he expressed concerns to them about Viacom's performance and received no response, according to a statement by Redstone's attorney, Michael Tu, on Saturday.
Viacom issued a statement saying that the board has tried to meet with Sumner many times and noted that he was silent during a recent call about the company's strategy, including its planned sale of a stake in movie studio Paramount.
The Sumner M. Redstone National Amusements Inc Trust owns about 80 percent of Redstone's privately-held National Amusements Inc, which in turn owns 80 percent of the voting rights in both Viacom and CBS.
After Redstone dies or is incapacitated, the trust will determine all matters that come to a shareholder vote at both companies, including potential mergers or acquisitions.
The trust's members are Shari Redstone's son, lawyer Tyler Korff; David Andelman, another lawyer who is on the CBS board; Norman Jacobs, Sumner Redstone's divorce lawyer; and Leonard Lewin, an attorney who represented Redstone's first wife, Phyllis, in her divorce from Redstone.
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Written By: Reuters
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