The duo have alleged that Shari Redstone is attempting to hijack her father’s plans.
In the wake of Sumner Redstone removing Philippe Dauman and George Abrams from the seven member of Viacom and CBS Corp, Dauman and Abrams have filed a legal complaint to stop their removal.
The legal complaint has been filed in the Family Court and in the Commonwealth of Massachusetts Probate. Along with their reinstatement in both companies, the legal complaint also aims to invalidate their removal as directors from the National Amusements, one of Redstone’s privately-held movie theater company.
“Shari Redstone is attempting to illegally hijack her father’s well-established estate plan. We will continue to have great respect and affection for Mr. Redstone, but he is clearly being manipulated by his daughter, Shari,” said Dauman in a statement.
This lawsuit is the latest legal battle for control over Redstone’s companies between Dauman and Shari Redstone, Sumner Redstone’s daughter who is the vice chairman of both CBS and Viacom as well as president and director at National Amusements.
Earlier last week, Sumner Redstone, now 93, had removed both Dauman and Abrams from the trust and the board of directors of National Amusements. According to a statement of Redstone’s attorney, Michael Tu, Redstone made the dismissals after he expressed concerns regarding Viacom’s performance. Having received no response from the duo, he took necessary action.
Meanwhile, Viacom has issued a statement saying the board of directors tried to meet Sumner many times. It duly noted that Mr. Redstone was silent during a recent call regarding the company’s strategy vis-à-vis its planned sale of stake in Paramount Studios.
Incidentally, National Amusements Inc. Trust owns around 80% of Redstone’s privately-held National Amusements Inc, which in turn owns 80% of the voting rights in both CBS and Viacom.
In the event of Redstone’s incapacitation or death, the seven member trust will determine the fate of both companies.
The trust’s 7 member board includes, Tyler Koff a lawyer and Shari Redstone’s son; David Andelman, a lawyer who sits on the CBS board; Leonard Lewin, an attorney who represented Redstone’s first wife Phyllis, during her divorce from Redstone and Norman Jacobs, Sumner Redstone’s divorce lawyer.
Categories: HR & Organization, Regulations & Legal, Strategy
manageria.biz 
Leave a comment