Shareholder sues Viacom board over Sumner Redstone health

Tue Jan 19, 2016 12:39pm EST
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(Reuters) - A shareholder filed a lawsuit against Viacom's (VIAB.O: Quote) board on Tuesday, alleging the company and CBS (CBS.N: Quote) improperly paid millions to executive chairman Sumner Redstone "while he was physically and mentally incapacitated."

Questions about Redstone's health were heightened in November after a former girlfriend filed a lawsuit that raised doubts about the billionaire's competence.

The new lawsuit, filed in Delaware Court of Chancery, says payments to Redstone "for services not rendered" amounted to bad faith by Viacom's board. It also says the board misrepresented Redstone's deteriorated physical and mental condition in a January 2015 proxy statement.

(Reporting by Dan Levine in San Francisco and Tom Hals in Delaware; Editing by Chizu Nomiyama)

A woman exits the Viacom Inc. headquarters in New York April 30, 2013. REUTERS/Lucas Jackson