Paramount and Leslie Moonves have agreed to settle sexual misconduct claims against CBS shareholders by paying $9.75 million.
Website of the U.S. Security and Exchange Commission DetailsActivities and timelines for the case, along with documentation.
“On August 27, 2018 and on October 1, 2018, Gene Samit and John Lantz, respectively, filed putative class action lawsuits in the United States District Court for the Southern District of New York, individually and on behalf of others similarly situated, for claims that are similar to those alleged in the amended complaint described below,”It reads.
Following a Court order dated November 6, 2018, the Court consolidated both of these actions.
“This action seeks to recover damages arising during this time period allegedly caused by the defendants’ purported violations of the federal securities laws, including by allegedly making materially false and misleading statements or failing to disclose material information, and seeks costs and expenses as well as remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On April 12, 2019, the defendants filed motions to dismiss this action, which the Court granted in part and denied in part on January 15, 2020,”Continue reading the document. “With the exception of one statement made by Mr. Moonves at an industry event in November 2017, in which he allegedly was acting as the agent of CBS, all claims as to all other allegedly false and misleading statements were dismissed.”
The statement referred to in the case paperwork involves a comment made by Moonves’ on the need to address sexual harassment issues in the Workplace at Variety’s November 2017 Entertainment and Technology Conference. In the summer and fall 2018, allegations against Moonves, then-CBS chief executive, were published in the New York Times as well as the New Yorker. According to the lawsuits, he lied to shareholders about his 2017 statements because he did not disclose his involvement with #MeToo-type actions.
This settlement adds to an existing $14.75million settlement. The Court granted preliminary approval May 13 2022 from a class-action lawsuit. A New York judge must approve the deal.
