CBS Corp. has struck a deal to settle litigation over the control of the broadcaster with its controlling shareholder Shari Redstone and National Amusements Inc., Reuters reported Sept. 9, citing sources familiar with the discussions.
The sources also said that CBS Corp. Chairman and CEO Les Moonves, who has recently been accused of sexual misconduct, will resign. The news is expected to be announced very soon, Reuters' sources said.
CBS in May filed a lawsuit against National Amusements, the Redstone family holding company that controls nearly 80% of the voting stock in both CBS and Viacom Inc., accusing National Amusements of breaching its fiduciary duty in pushing for CBS to merge with Viacom.
National Amusements also filed a suit against CBS, asking the court to stop CBS' board from trying to dilute the shareholder's voting control in the company via a special dividend.
CBS and National Amusements both declined to comment to Reuters about the reported settlement or Moonves' resignation.