Former CBS shareholders have settled a lengthy class action lawsuit against the company over sexual harassment allegations against former CEO Les Munw. The $ 14.75 million in cash includes CBS shareholders from November 2017 to July 2018.
Munves was fired from CBS in 2018 after numerous allegations of harassment. Investors led by the Construction Workers Retirement Fund of Southern California sued investors in the same year, arguing that the company’s and Moonves’ public lies and omissions ignored the entire investor sexual harassment scandal that developed internally. They claimed they lost money after the allegations broke and sued the issuer in a New York federal court for violating securities law.
According to the original lawsuit, “Defendants made numerous materially false and misleading statements or omissions about corporate policy and corporate governance, key personnel, including Moonves, and other media statements that led to the price. The company’s common stock traded at artificially inflated prices until the market learned of the erroneous and misleading nature of the announcements and the company’s stock price dropped dramatically.
CBS said the securities law did not require her to disclose allegations of sexual misconduct or potential impact on her business. To some extent, the trial judge agreed with the company in subsequent decisions.
Payment Announcement (read here), Lead Plaintiff and Lead Counsel said they believe their claims to be well founded but were “aware of the problems inherent in the evidence” under the Securities Act. The decision “balances the risks, costs and delays associated with complex security class cases” and recognizes “the costs and length of litigation necessary to be considered and appealed” with an uncertain outcome.
Moonves, the face of CBS for years and one of the most respected executives in the industry, has become the face of the #MeToo movement. უ U – York An article detailing the allegations of harassment and intimidation by many women.
CBS had previously resolved a dispute over Moonves’ $ 120 million exit package, and the cash refund that was secured was returned to the company.
CBS merged with Viacom in late 2019. ViacomCBS was recently renamed Paramount Global.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
