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| Redstone and Viacom Executives Go to Court Against Each Other | Redstone and Viacom Executives Go to Court Against Each Other |
| (about 13 hours later) | |
| The vicious battle over the future of Sumner M. Redstone’s $40 billion media empire boiled over from the public stage into courtrooms on both coasts Monday. | The vicious battle over the future of Sumner M. Redstone’s $40 billion media empire boiled over from the public stage into courtrooms on both coasts Monday. |
| With sharp rhetoric, directors from Viacom, Mr. Redstone’s entertainment company, charged in a lawsuit that the media mogul had been manipulated by his daughter, Shari Redstone, into changing the terms of the trust that controls his companies. Philippe P. Dauman, the chairman and chief executive of Viacom, who was removed from the trust, called it an “unlawful corporate takeover.” | With sharp rhetoric, directors from Viacom, Mr. Redstone’s entertainment company, charged in a lawsuit that the media mogul had been manipulated by his daughter, Shari Redstone, into changing the terms of the trust that controls his companies. Philippe P. Dauman, the chairman and chief executive of Viacom, who was removed from the trust, called it an “unlawful corporate takeover.” |
| Mr. Redstone’s legal team fired back with a petition in Los Angeles, asking that a court confirm the validity of the changes he made. Mr. Redstone’s lawyer said his client was “saddened that Mr. Dauman is trying to make this dispute” about Mr. Redstone’s daughter. | Mr. Redstone’s legal team fired back with a petition in Los Angeles, asking that a court confirm the validity of the changes he made. Mr. Redstone’s lawyer said his client was “saddened that Mr. Dauman is trying to make this dispute” about Mr. Redstone’s daughter. |
| The dueling legal actions represent a bitter new fissure in Mr. Redstone’s corporate empire, which he built into an entertainment conglomerate after wresting control of Viacom in 1987. They also feature a reversal of fortunes for some of the key principals involved. Ms. Redstone, long estranged from her father, is now reconciled with him, and his actions over the weekend align with her view of how his companies should be managed. Mr. Dauman and George Abrams, a Viacom director who was also removed from the trust, are longtime confidants of Mr. Redstone who now find themselves pushed aside and forced to challenge his mental capacity. | The dueling legal actions represent a bitter new fissure in Mr. Redstone’s corporate empire, which he built into an entertainment conglomerate after wresting control of Viacom in 1987. They also feature a reversal of fortunes for some of the key principals involved. Ms. Redstone, long estranged from her father, is now reconciled with him, and his actions over the weekend align with her view of how his companies should be managed. Mr. Dauman and George Abrams, a Viacom director who was also removed from the trust, are longtime confidants of Mr. Redstone who now find themselves pushed aside and forced to challenge his mental capacity. |
| The legal war erupted after Mr. Redstone on Friday unexpectedly ousted Mr. Dauman and Mr. Abrams from the trust, which will gain control of Mr. Redstone’s companies when he dies or is declared incompetent. Mr. Redstone also ejected them from their positions on the board of the theater chain company National Amusements, through which Mr. Redstone controls his companies. | The legal war erupted after Mr. Redstone on Friday unexpectedly ousted Mr. Dauman and Mr. Abrams from the trust, which will gain control of Mr. Redstone’s companies when he dies or is declared incompetent. Mr. Redstone also ejected them from their positions on the board of the theater chain company National Amusements, through which Mr. Redstone controls his companies. |
| After a weekend of caustic accusations, Mr. Dauman and Mr. Abrams filed a lawsuit Monday morning in the probate court in Canton, Mass., seeking to immediately block the moves. The 24-page suit depicts Mr. Redstone, 92, as suffering “profound physical and mental illness” and being subject to the undue influence of his daughter. It also claims that the changes will allow Ms. Redstone to “illegitimately tip the balance of power to her.” | |
| In a four-page petition filed in Los Angeles County Superior Court, lawyers for Mr. Redstone asserted that because “there is no evidence” that Mr. Redstone was incapacitated or unable to manage his business affairs, he still had the power to remove or add trustees. | In a four-page petition filed in Los Angeles County Superior Court, lawyers for Mr. Redstone asserted that because “there is no evidence” that Mr. Redstone was incapacitated or unable to manage his business affairs, he still had the power to remove or add trustees. |
| A determination of Mr. Redstone’s incapacity, the petition said, depends on a court ruling or a document signed by three doctors, stating that he lacks the competency to manage his affairs. Neither occurred before Mr. Redstone changed the trust, making the decisions valid, the petition states. | A determination of Mr. Redstone’s incapacity, the petition said, depends on a court ruling or a document signed by three doctors, stating that he lacks the competency to manage his affairs. Neither occurred before Mr. Redstone changed the trust, making the decisions valid, the petition states. |
| “Mr. Redstone has been clear and unequivocal in his desire to remove Philippe Dauman and George Abrams as trustees,” Robert N. Klieger, a lawyer with Hueston Hennigan who is representing Mr. Redstone, said in a statement. | “Mr. Redstone has been clear and unequivocal in his desire to remove Philippe Dauman and George Abrams as trustees,” Robert N. Klieger, a lawyer with Hueston Hennigan who is representing Mr. Redstone, said in a statement. |
| The trust, intended to benefit Mr. Redstone’s five grandchildren, wields enormous power. The seven voting members could move to dismiss the boards and leadership of Viacom and CBS and also make plans to merge or sell the companies. | The trust, intended to benefit Mr. Redstone’s five grandchildren, wields enormous power. The seven voting members could move to dismiss the boards and leadership of Viacom and CBS and also make plans to merge or sell the companies. |
| John C. Coffee Jr., a professor and the director of the Center on Corporate Governance at Columbia Law School, said that “the burden of proof lies with the plaintiff,” in this case, the ousted trustees and Viacom. | John C. Coffee Jr., a professor and the director of the Center on Corporate Governance at Columbia Law School, said that “the burden of proof lies with the plaintiff,” in this case, the ousted trustees and Viacom. |
| But he added, “At some point, given the debate over his condition, there will need to be something: a signed document or a videotape demonstrating that they are hearing from him and not from his daughter, Shari.” | But he added, “At some point, given the debate over his condition, there will need to be something: a signed document or a videotape demonstrating that they are hearing from him and not from his daughter, Shari.” |
| The dispute puts a renewed focus on the question of Mr. Redstone’s mental capacity. In November, a former companion of Mr. Redstone filed suit alleging that he was not competent and was under the influence of his daughter when he removed the companion, Manuela Herzer, from a directive that would have given her supervision of his health care. That suit was dismissed two weeks ago. | The dispute puts a renewed focus on the question of Mr. Redstone’s mental capacity. In November, a former companion of Mr. Redstone filed suit alleging that he was not competent and was under the influence of his daughter when he removed the companion, Manuela Herzer, from a directive that would have given her supervision of his health care. That suit was dismissed two weeks ago. |
| While the judge sided with Mr. Redstone, he did not make a decision on Mr. Redstone’s competency. According to the lawsuit filed by Mr. Dauman and Mr. Abrams, Mr. Redstone’s physical and mental health has diminished significantly since Ms. Herzer’s suit was filed in November. | While the judge sided with Mr. Redstone, he did not make a decision on Mr. Redstone’s competency. According to the lawsuit filed by Mr. Dauman and Mr. Abrams, Mr. Redstone’s physical and mental health has diminished significantly since Ms. Herzer’s suit was filed in November. |
| Mr. Klieger sought to use Mr. Dauman’s own words from the Herzer lawsuit against him. “It is telling that Mr. Dauman is raising the question of mental capacity for the first time after he’s been removed when, just months ago in court documents, he pronounced Mr. Redstone ‘engaged, attentive, and as opinionated as ever,’” Mr. Klieger said in the statement. | Mr. Klieger sought to use Mr. Dauman’s own words from the Herzer lawsuit against him. “It is telling that Mr. Dauman is raising the question of mental capacity for the first time after he’s been removed when, just months ago in court documents, he pronounced Mr. Redstone ‘engaged, attentive, and as opinionated as ever,’” Mr. Klieger said in the statement. |
| The suit from Mr. Dauman and Mr. Abrams details how Mr. Redstone, who has not been seen publicly for nearly a year, can no longer stand, walk, read, write or speak coherently. It asserts that he cannot swallow and requires a feeding tube to eat and drink and the suctioning of phlegm and saliva throughout the day and night to avoid breathing complications. That description is strikingly similar to the one Ms. Herzer provided in her lawsuit. | The suit from Mr. Dauman and Mr. Abrams details how Mr. Redstone, who has not been seen publicly for nearly a year, can no longer stand, walk, read, write or speak coherently. It asserts that he cannot swallow and requires a feeding tube to eat and drink and the suctioning of phlegm and saliva throughout the day and night to avoid breathing complications. That description is strikingly similar to the one Ms. Herzer provided in her lawsuit. |
| Mr. Dauman and Mr. Abrams claim that Mr. Redstone’s ability to “understand and assess the consequences of his actions is limited.” | Mr. Dauman and Mr. Abrams claim that Mr. Redstone’s ability to “understand and assess the consequences of his actions is limited.” |
| The suit also says that Ms. Redstone made changes to Mr. Redstone’s last will and testament. | The suit also says that Ms. Redstone made changes to Mr. Redstone’s last will and testament. |
| “After years of estrangement, she has inserted herself into his home, taken over his life and isolated him from anyone not under her control, including longtime business colleagues,” Mr. Dauman said in a statement on Monday. “Shari’s actions amount to an unlawful corporate takeover, and if effectuated, could have far-reaching consequences for thousands of shareholders and employees of Viacom.” | “After years of estrangement, she has inserted herself into his home, taken over his life and isolated him from anyone not under her control, including longtime business colleagues,” Mr. Dauman said in a statement on Monday. “Shari’s actions amount to an unlawful corporate takeover, and if effectuated, could have far-reaching consequences for thousands of shareholders and employees of Viacom.” |
| In a statement issued on Monday, Nancy Sterling, a spokeswoman for Ms. Redstone, said it was “absurd for anyone to accuse Shari of manipulating her father.” | In a statement issued on Monday, Nancy Sterling, a spokeswoman for Ms. Redstone, said it was “absurd for anyone to accuse Shari of manipulating her father.” |
| “Sumner makes his own decisions regarding whom he wants to see, both in his home and elsewhere,” Ms. Sterling said. | “Sumner makes his own decisions regarding whom he wants to see, both in his home and elsewhere,” Ms. Sterling said. |
| The weekend’s developments were considered a major victory for Ms. Redstone in her quest to shape the future of her father’s media companies. She has publicly opposed Mr. Dauman’s leadership of Viacom; when her father ceded the title in February, she was the sole Viacom director to vote against Mr. Dauman’s elevation to chairman. | The weekend’s developments were considered a major victory for Ms. Redstone in her quest to shape the future of her father’s media companies. She has publicly opposed Mr. Dauman’s leadership of Viacom; when her father ceded the title in February, she was the sole Viacom director to vote against Mr. Dauman’s elevation to chairman. |
| In their suit, Mr. Dauman and Mr. Abrams claimed that the people put forward to replace them on the trust and the board are under the influence and control of Ms. Redstone. | In their suit, Mr. Dauman and Mr. Abrams claimed that the people put forward to replace them on the trust and the board are under the influence and control of Ms. Redstone. |
| They also questioned whether Mr. Redstone’s legal representation is legitimate. Their suit states that Michael C. Tu, a partner at the law firm Orrick, Herrington & Sutcliffe, had refused to disclose whether he had ever met Mr. Redstone and asserts that statements that Mr. Tu made to the media related to Viacom business activities were false. | They also questioned whether Mr. Redstone’s legal representation is legitimate. Their suit states that Michael C. Tu, a partner at the law firm Orrick, Herrington & Sutcliffe, had refused to disclose whether he had ever met Mr. Redstone and asserts that statements that Mr. Tu made to the media related to Viacom business activities were false. |
| “As counsel for Mr. Redstone, I of course have met with my client on these matters,” Mr. Tu said in an email. “The accusations in today’s filing about false statements are reckless and irresponsible. These accusations and others will be vigorously contested in court.” | “As counsel for Mr. Redstone, I of course have met with my client on these matters,” Mr. Tu said in an email. “The accusations in today’s filing about false statements are reckless and irresponsible. These accusations and others will be vigorously contested in court.” |
| Mr. Redstone turns 93 on Friday. | Mr. Redstone turns 93 on Friday. |