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Paramount Viacom-CBS merger settlement overview:
- Who: Paramount Global has agreed to pay $122.5 million to resolve consolidated shareholder claims revolving around the merger of Viacom and CBS that created ViacomCBS Inc.
- Why: Shareholders argued the December 2019 merger was unfair and pushed through by media mogul Shari E. Redstone, who they alleged wanted to ensure her choice for CEO was seated at the merged company.
- Where: The case is in the Court of Chancery of the state of Delaware.
Paramount Global has agreed to pay $122.5 million to resolve consolidated shareholder claims revolving around the $30 billion merger between CBS and Viacom that created ViacomCBS Inc. in 2019.
The multinational mass media and entertainment conglomerate announced the agreement — which the company said came to fruition on Feb. 27 — in a filing with the U.S. Securities and Exchange Commission last Friday, reports Law360.
The settlement agreement still must be approved by the Delaware Court of Chancery, according to Paramount, which said that the “vast majority” of the settlement amount would be owed “no less than five business days before the final settlement hearing.”
Terms of the settlement were not immediately disclosed, meanwhile, with Paramount noting that it still is involved in litigation with insurance carriers that is revolving around coverage, reports Law360.
Investors accused CBS and Viacom of unfair conduct with 2019 company merger
Shareholders reportedly argued the December 2019 merger between CBS and Viacom was unfair and the result of a media mogul using a controlled shareholder stake that they claimed pushed it through.
Shari E. Redstone, the purported media mogul at the center of the controversy, was accused of pushing the merger through to ensure that her choice for CEO of the merged company would be chosen, reports Law360.
Shareholders for Viacom and CBS reportedly filed separate complaints in 2019 and 2020, respectively, in response to the blockbuster merger.
In October 2014, Viacom, along with Google, filed separate motions to dismiss a consolidated class action lawsuit arguing the companies broke the law by allegedly tracking the internet and video viewing activity of minors who completed sign-up processes on Nickelodeon websites.
The companies were accused of installing cookies used to track an individual’s internet and video viewing activities on the computers used by individuals who indicated they were children younger than 13 years old.
Parents behind the class action lawsuits argued the allegedly installed cookies were used to help create targeted advertisements for the children.
Were you harmed when Viacom and CBS merged into ViacomCBS Inc.? Let us know in the comments!
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