CBS Shareholders Class Action Lawsuit Alleges Sexual Misconduct Scandal Impacted Stock Value

A class action investigation has been launched over allegations that former CBS CEO Les Moonves sexually harassed a number of women. Attorneys are reaching out to CBS shareholders who may have suffered damage to their stock due to the sexual harassment allegations against Moonves.

This investigation has already spurred legal action from CBS shareholders who filed a recent claim against Moonves and CBS, stating that the sexual harassment claims had caused the value of their stocks to dip.

The CBS shareholders allege that the company had misrepresented its compliance with internal anti-harassment policies. Shareholder say this ultimately led to the stocks taking a $3.52 million price decline.

CBS shareholders allege that the media company did not disclose the fact that Moonves had sexually harassed at least six women, each of which accused him of this illicit behavior in a scandal that led to his ouster. The New Yorker reported the sexual harassment claims in an expose article that labeled CBS’ internal harassment policies as insufficient.

After Moonves’ behavior became public, CBS stock prices allegedly fell over six percent to $54.01 per share on July 27, 2018. In response to the sudden financial damages, CBS shareholders filed a class action lawsuit.

“At the time of the [stock] purchases and/or acquisitions by plaintiff and the class, the true value of CBS securities was substantially lower than the prices paid by plaintiff and the other members of the class. [T]he market price of CBS securities declined sharply upon public disclosure of the facts alleged herein to the injury of plaintiff and class members,” the class action lawsuit states.

Overview of Sexual Harassment Allegations

CBS shareholders allege that Moonves and Chief Operating Officer Joseph Inanniello failed to disclosed the alleged sexual harassment allegations, as well as how the company handles its internal harassment policies.

The claim states that CBS response to sexual harassment was inadequate and the company did not have a proper protocol in place for different forms of internal harassment reported within the company.

The class action lawsuit also points out that media outlets began reporting sexual harassment allegations on July 27, 2018. The New Yorker report was published days later and linked Moonves’s alleged behavior to a much bigger cultural problem at CBS regarding sexual harassment.

Not only did this force employees to work in a hostile and uncomfortable work environment, alleges the class action lawsuit, the company’s ethics and compliance with sexual harassment policies was misrepresented to CBS shareholders.

“As a result of defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the company’s securities, plaintiff and other class members have suffered significant losses and damages,” the class action lawsuit states.

CBS Corporation is reportedly investigating the sexual harassment allegations against Moonves. Allegedly, several women were sexually harassed by the former CEO between the 1980s to the mid 2000s. The sexual harassment allegations include instances of forcible physical touching, along with threats to sabotage the careers of these women.

CBS also allegedly ignored reports of other men committing acts of sexual harassment, which allegedly contributed to the toxic company culture.

The CBS Shareholder Class Action Lawsuit is Gene Samit. v. CBS Corp. et al., Case No. 1:18-cv-07796, in the U.S. District Court for the Southern District of New York.

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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