Paramount Global Settles Shareholder Suit for $122.5 Million

Paramount Global settled an investor lawsuit tied to the controversial 2019 merger of CBS Corp. and Viacom Inc. that created the company, agreeing to pay $122.5 million.

(Bloomberg) — Paramount Global settled an investor lawsuit tied to the controversial 2019 merger of CBS Corp. and Viacom Inc. that created the company, agreeing to pay $122.5 million.

The settlement with Viacom investors was reached on Feb. 27, according to a securities filing Friday. The plaintiffs alleged that Viacom’s directors — including Chairman Shari Redstone — violated their fiduciary duty to shareholders when they pushed for the merger. The Redstone family owned the majority of the voting shares in both companies for decades and still controls Paramount.

The accord only settles part of the long-running fight over the joining of the two businesses. CBS investors continue to press claims over the combination in a separate Delaware case. The company is also engaged in litigation with insurance carriers. At issue there is at least $200 million in coverage provided by 17 different companies, according to court filings. A motion to dismiss that case was denied last month.

New York-based Paramount owns TV networks including CBS, MTV and Nickelodeon, as well as the Paramount Pictures film studio.

Paramount didn’t immediately respond to an email seeking comment after hours and lawyers for the state of California’s pension fund, one of the investors who sued, couldn’t immediately comment Friday.

The Paramount settlement is the latest twist in more than six years of corporate battles at the companies. The combined firm operated as ViacomCBS until it changed its name to Paramount Global last year.

Read more: Shari Redstone, Viacom sue insurers over merger suit coverage

The cases are In RE CBS Corporation Stockholder Class Action, 20-0111, Delaware Chancery Court (Wilmington) and Shari Redstone v Ace American Insurance Co, No. N22C-06-020 AML CCLD, Delaware Superior Court (Wilmington)

(Updates with details on insurance fight in fourth paragraph)

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