Sumner Redstone's Team in Settlement Talks in Competency Case
April 05 2016 - 12:10PM
Dow Jones News
Representatives of Sumner Redstone have entered talks to settle
a legal dispute with a former companion who challenged the media
mogul's mental competency, according to people familiar with the
matter.
If an agreement is reached it would be the latest twist in a
drama that has riveted Hollywood and Wall Street, while becoming a
distraction for the media companies Mr. Redstone controls, Viacom
Inc. and CBS Corp.
The former companion, Manuela Herzer, last November filed a suit
claiming that 92-year-old Mr. Redstone was mentally incompetent
when he removed her as his health-care agent and kicked her out of
his Los Angeles mansion. Mr. Redstone's team had argued that the
suit was without merit and was fighting it. A trial was set for
May.
The litigation has been suspended pending the settlement talks,
the people familiar with the matter said. Viacom Chief Executive
Philippe Dauman was scheduled to be deposed in the case Tuesday,
but that will no longer happen, the people said.
Mr. Redstone's health has declined after mini-strokes and other
problems in recent years. He now has trouble speaking and often
requires an interpreter, according to people familiar with the
situation and documents from the court case.
Mr. Redstone controls nearly 80% of the voting shares of
broadcast giant CBS and Viacom, which owns cable networks such as
MTV and Nickelodeon as well as the Paramount Pictures studio. When
he dies or is deemed incapacitated, his holdings will be managed by
a seven-person trust.
As the drama over Mr. Redstone's personal affairs has played
out, Viacom's Mr. Dauman has been trying to turn around the
company, whose shares have slid due to investor concerns over the
future of cable television in a media landscape where streaming
video and cord-cutting are on the rise.
Write to Keach Hagey at keach.hagey@wsj.com
(END) Dow Jones Newswires
April 05, 2016 11:55 ET (15:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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