💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Media mogul Redstone victim of 'undue influence,' ex-girlfriend says

Published 02/18/2016, 11:53 PM
© Reuters. Redstone, executive chairman of CBS Corp. and Viacom, arrives at premiere of "The Guilt Trip" starring Streisand and Rogen in Los Angeles
CBS_old
-

By Lisa Richwine and Dan Levine

LOS ANGELES (Reuters) - Media mogul Sumner Redstone was under "undue influence" from people around him when he replaced his designated healthcare agent last fall, his ex-girlfriend argued on Thursday in her lawsuit challenging the elderly billionaire's mental competence.

The ex-girlfriend, Manuela Herzer, has sued over her removal as 92-year-old Redstone's healthcare agent in favor of Viacom Inc Chief Executive Officer Philippe Dauman. She claims Redstone was not mentally competent to make that decision in October 2015.

Herzer's attorneys said in a court filing on Thursday Redstone "is vulnerable to, and has become the victim of, undue influence, fraud, manipulation and chicanery."

Redstone gave up his roles as executive chairman of Viacom and CBS Corp (N:CBS) earlier this month. He still controls about 80 percent of the voting shares in both companies.

His attorneys have moved to dismiss Herzer's case, saying Redstone was fully aware of his actions and arguing that Herzer has filed her lawsuit for financial gain.

In October, Redstone also revoked a part of his estate plan that would have given Herzer a $70 million inheritance, his lawyers said in an earlier filing. Redstone instead directed those assets to his charitable foundation, they said.

A Los Angeles judge is set to consider on Feb. 29 whether to throw out Herzer's lawsuit.

In Thursday's filing, Herzer's attorneys said Redstone is "frail" and "isolated in a virtual intensive care unit." Daughter Shari Redstone "exploited his isolation" and "manipulated her incapacitated father to her own financial advantage," they said.

A spokeswoman for the daughter said: "Shari Redstone is not going to dignify today’s baseless and mean-spirited attack on the Redstone family with any comment."

Lawyers for Herzer also said a letter to the Viacom board that praised Dauman's leadership was a "fraud" written by Dauman himself but was portrayed as coming from Sumner Redstone. A Viacom spokesman had no comment.

Portions of Thursday's filing were redacted, including details of a Jan. 29 examination of Redstone by Stephen Read, a geriatric psychiatrist hired by Herzer.

There was no public indication Read had changed his opinion from November, when he filed a court declaration saying he believed Redstone lacked the mental capacity to change his healthcare directive.

© Reuters. Redstone, executive chairman of CBS Corp. and Viacom, arrives at premiere of "The Guilt Trip" starring Streisand and Rogen in Los Angeles

Redstone's personal physician, Richard Gold, and geriatric psychiatrist James Spar have told the court they believe the mogul was competent to make that decision.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.