Paramount Global Para agreed to pay $122.5 million to settle a lawsuit alleging that the CBS-Viacom merger was unfair to shareholders.
The company said it has agreed to settle a class action lawsuit currently pending in Chancery Court in Delaware, Variety reports.
In the course of the merger, CBS’s stake was overvalued and Viacom’s was undervalued, harming Viacom’s shareholders, according to the lawsuit.
The lawsuit claims that the chairman of Paramount Global shari redstoneAs Variety reported, it ousted a board member for its “domineering” effort to merge the two companies.
The lead plaintiff in the lawsuit, California Public Service Retirement System (CalPERS), said in a statement that the lawsuit highlights the issue of a dual-class stock structure.
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“CalPERS is pleased to announce that the settlement, one of the largest class action settlements in Delaware history, will take action against management overreach and remedy the damages suffered by unrelated Viacom shareholders. We believe it confirms our decision,” the outlet quoted. Matthew Jacobssaid CalPERS legal counsel.
Paramount Global is facing another class action lawsuit from CBS shareholders, according to reports.
The lawsuit challenges the merger, alleging that: Joseph RanielloCBS’s former acting CEO was given a $125 million severance package to gain support for the merger.
The merger of CBS and Viacom has created a new company. Viacom CBSled by Paramount CEO Bob Bakish.
Last month, Paramount reported a net loss attributable to common shareholders of $37.9 million, or $0.17 per diluted share.
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