CBS shareholders who say they were misled about how the company engaged in sexual misconduct and lost money when allegations of harassment emerged against fired CEO Leslie Munvez have been awarded $14.75 million in a class-action securities lawsuit. secret.
Muns left CBS in 2018 after more than a dozen women accused him of sexual harassment. He denies the charges.
Investors, led by the Southern California Construction Workers Retirement Fund, sued CBS in August 2018 for alleged violations of securities laws. They alleged that CBS and its executives made false statements about their policies and sexual assault allegations from September 2016 to December 2018.
The lawsuit, which reached federal court in New York, came a month later. the New Yorker He published a story detailing how he practiced unwanted sexual advances on several women in Munwes, known in the industry for his ability to create or end a career. Several people have accused him of harassment and bullying, and dozens more describe his alleged abuse at the company.
Moonves, widely considered the titan of the entertainment industry and known for his hands-on approach as a corporate executive, led CBS for 15 years as CEO. He has been credited with reviving what was then a defunct company to become the most-watched network of the 2010s. The stock price soared from $5 ten years ago to nearly $70 in 2017. During his reign, CBS produced hits like დThe theory of the explosive explosion s How I met your mother.
The settlement represents 7% to 9% of the expected loss of up to $210 million if shareholders win the lawsuit, according to the lawsuit. People who purchased CBS shares from November 2017 to July 2018 will be able to participate in the deal.
In requesting approval of the payment, the shareholders acknowledged CBS’ “substantial arguments in favor of liability”. They say they fought an uphill battle to show it was CBS’s duty to expose the rumors about Munvis’ behavior.
“The proposed settlement balances the risks, costs and delays associated with complex security-class transactions like this one,” the shareholders wrote in a statement. “When considered in the context of these risks and the uncertainty of any further defendant recovery, retaliation is extremely beneficial to the retaliation class.”
In support of the lawsuit, CBS argued that it was under no obligation to share allegations of sexual misconduct or assess the impact it could have on business operations. Federal securities law, he says, is not intended to regulate corporate mismanagement, “no matter how embarrassing the scandal and how significant the scandal is to the market.”
CBS said: “If it were otherwise, the corporation would be more obligated to expose allegations that its CEO was guilty of sexual harassment than allegations that its CEO was involved in an illegal bribery scheme, which is clearly not law. ”.
US District Judge Valerie Capron, who is overseeing the case, issued a ruling in January 2020 that broadly agrees with the network. She concluded that only an alleged shareholder error was sufficient to substantiate the claim, significantly reducing the class period. Lawyers representing the shareholders did not attempt to correct their allegations in the amended lawsuit.
Lawyers for the plaintiffs say they are not seeking more than $3.7 million, or 25% of the settlement.
The complaint concerned Munvis’ statements Variety An innovative summit where he called the #MeToo movement a “watershed moment” and highlighted the importance of having a company culture that does not tolerate harassment and encourages victims to file complaints.”
The complaint states: “In fact, however, CBS and its executives, led by its former CEO Munves, were involved in promoting a company-wide standard and practice of sexual harassment, creating a ‘culture of fear’ and a hostile job. environment that is diametrically opposed to the public. Adverts. At the beginning of the term, CBS was immersed in a culture of sexual harassment, intimidation and revenge. The culture originated from Munves, who was later found to be involved in systemic sexual misconduct, both while working for CBS and various sexual assault allegations.
Other allegations in the complaint include CBS’s claim that it maintains “the highest standards of proper and ethical business conduct”, including its “zero tolerance” policy regarding sexual harassment and discrimination. The company said it would “protect anyone who reports a violation in good faith” and that retaliation “against an employee who reports in good faith will be unacceptable”.
CBS stressed that its business depended on Munvis’ experience and that his departure could “have a material negative impact on the company.” Investors objected to CBS’ failure to disclose the real risks it would be forced to abandon due to its misconduct.
Munvez dropped the lawsuit in 2021, seeking his $120 million compensation. A report from lawyers retained by the network found that he violated the terms of his employment contract and engaged in “various acts of serious non-consensual sexual misconduct in and out of the workplace, before and after joining CBS.” . It also concluded that he had misled investigators and destroyed the evidence to avoid dismissal.
In 2019, Moonves launched Moon Rise Unlimited, a production, distribution and streaming banner.
CBS did not respond to a request for comment.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
