Paramount receives $167M in settlement of lawsuit by CBS shareholders

Paramount Global has agreed to a $167.5 million settlement of a case stemming from the controversial 2019 merger of Viacom Inc. and CBS Corp. that created the entertainment company, a Securities and Exchange Commission (SEC) filing showed.

According to the SEC filing Friday, the $167.5 million settlement will be the official dismissal of the case in exchange for the payment to Paramount.

Paramount +

In this photo illustration, a hand holding a TV remote control points to a screen that displays the Paramount + (Plus) logo.

Paramount said in an SEC filing today that parties had agreed to a binding term sheet for the “final dismissal” of the litigation.

The settlement must still be approved by a judge.

CBS, VIACOM AGREE TO MERGE, FORMING A $28B ENTERTAINMENT FIRM

CBS shareholders filed three separate suits, which were later consolidated, alleging the company had overpaid for Viacom, clearing the way for media mogul Shari Redstone to bolster her family’s media empire. Her father initially bought the network in 1999 for $35 billion.

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Sherri Redstone

CEO of Viacom Robert M. Bakish and Sherri Redstone attend as ViacomCBS Inc. rings the opening bell at NASDAQ on December 05, 2019, in New York City.

In March, former Viacom shareholders were awarded $122.5 million after claiming the 2019 merger was unfair to them.

Paramount owns CBS, MTV and Nickelodeon.

Paramount did not immediately respond to Fox News Digital’s request for comment.

Reuter’s contributed to this report.

Source: https://finance.yahoo.com/news/paramount-receives-167m-settlement-lawsuit-094128827.html