CBS Shareholders: Stocks Took Hit After Les Moonves Sexual Assault Accusations

CBS shareholders are now bringing litigation over the allegations of sexual misconduct against Les Moonves, claiming the company’s failure to properly address them led to a decrease in stock value.

When news of the Les Moonves sexual assault accusations was publicized in an article by The New Yorker, CBS stock shares fell to $54.01 per share, a loss of 6.12 percent.

The breaking news of the Les Moonves sexual assault accusations festered over the subsequent weekend and contributed to a stock trading value of $53.62 on Monday, July 30.

Slightly under a month later on Monday, Aug. 27, a shareholder class action lawsuit was filed against the broadcasting giant for its alleged failure to reveal the CEO’s alleged sexual improprieties in the workplace. The class action suit’s plaintiffs claim misled them by failing to disclose the allegations.

The Nature of Les Moonves Sexual Assault Accusations

According to Variety, six different women made their Les Moonves sexual assault accusations public. The women indicated that the executive has made forceful sexual advances upon them and, when they refused to cooperate, he took to retaliating professionally and hurting their individual careers.

CBS has retained counsel to investigate the Les Moonves sexual assault accusations, but many shareholders feel the damage has already been done.

Gene S., a shareholder involved in the class action securities lawsuit against CBS, claims that the company carefully omitted information regarding the allegations against Moonves, misleading their investors. The plaintiffs’ complaint points to mismanagement in enforcing the company’s “zero tolerance” policy regarding sexual harassment and discrimination.

The shareholder lawsuit proposes to represent a Class of shareholders who purchased shares between Feb. 14, 2014 and July 27, 2018 —the day the New Yorker article was published.

Security Lawsuit Questions Timing of CEO Step Down

According to another report, there was an existing criminal complaint registered against Moonves with the City of Los Angeles Police Department by one of the women whose accusation was later covered by The New Yorker. This report was made in 2017 and found to have credibility by the LAPD, but no charges were forthcoming because the statute of limitations—the time limit after a criminal event where victims can file and press charges—had passed.

Les Moonves evidently knew about the LAPD complaint and went to the CBS board of directors before the accusations against him were published in The New Yorker. The board allegedly took no immediate action, however.

Additional Les Moonves sexual assault accusations came forward later and, after these were made public, CBS made its announcement that the executive would step down from his leadership position with the company. CBS is being criticized for its failure to take action against Les Moonves when the allegations first surfaced in midsummer.

CBS shareholders who owned stock around the time the allegations became public may qualify to join a stockholder class action lawsuit investigation to recover funds lost as a result of CBS stock value loss.

Join a Free CBS Shareholder Lawsuit Investigation

Current CBS shareholders, especially those who have held shares for four years or more, may be eligible for compensation if their stocks took a hit around the time the Les Moonves sexual misconduct allegations were made public.

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