CBS Directors Agree to Pay $1.25 Million to Settle Sumner Redstone Suit
- Money for accord coming from insurance covering CBS directors
- Investors claimed compensation to billionare amounted to waste
Sumner Redstone
Photographer: Jonathan Alcorn/Bloomberg
This article is for subscribers only.
CBS Corp. directors agreed to settle for $1.25 million investors’ claims that network owner Sumner Redstone received millions of dollars in improper compensation after he became incapacitated in 2014.
The money -- coming from insurance covering CBS’s officers and directors -- will go back into the network’s coffers and not to individual shareholders, according to a March 14 filing in a Delaware state court. Such derivative suits are common against corporate boards.