Viacom CEO Files Suit to Block Changes to Redstone Trust
May 23 2016 - 9:30AM
Dow Jones News
Viacom Inc. Chairman and Chief Executive Philippe Dauman and
board member George Abrams said they have filed a lawsuit
challenging their dismissals from the trust that will oversee
Sumner Redstone's $40 billion media empire when he dies or is
incapacitated.
The lawsuit, which Viacom said was filed in Massachusetts
probate and family court, also seeks to invalidate their removal as
directors of National Amusements, Redstone's holding company that
oversees his almost 80% voting stakes in CBS and Viacom.
Late Friday, a lawyer claiming to represent Mr. Redstone
informed the mogul's two longtime lieutenants of their dismissals.
That set off a firestorm over the weekend, with Mr. Dauman and Mr.
Abrams questioning whether the move was truly representative of
92-year-old Mr. Redstone's wishes, suggesting that his daughter
Shari Redstone is behind the changes. She has denied those
accusations.
"Shari Redstone is attempting to illegally hijack her father's
well-established estate plan by removing professional managers and
reportedly installing her daughter, an employee and a friend who
are firmly under her control," Mr. Dauman said in a statement
Monday. "We all continue to have great respect and affection for
Mr. Redstone, but he is clearly being manipulated by his daughter,
Shari."
Mr. Abrams said in the statement, "My sole purpose in joining
this lawsuit is to allow a court to determine whether Sumner
Redstone, in his current diminished capacity, has been subject to
undue influence in his recent actions in changing his Trustees and
in changing other documents."
A California judge two weeks ago threw out a lawsuit challenging
Mr. Redstone's mental capacity, which had been filed by a former
companion.
Write to Joe Flint at joe.flint@wsj.com
(END) Dow Jones Newswires
May 23, 2016 10:15 ET (14:15 GMT)
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