A settlement has been reached in the lawsuit that has been swirling around Viacom and CBS Corp. controlling shareholder Sumner Redstone. Variety reports that attorneys for Redstone reached a preliminary settlement with his former girlfriend Manuela Herzer, who challenged Redstone’s mental competency in a lawsuit.
The report cites unnamed sources who are familiar with the situation.
“The settlement means information about Sumner Redstone’s health and well-being, which has become a source of concern for investors in his holdings in recent months, will remain private,” Variety reports, adding: “Had the legal proceeding continued, Philippe Dauman, Viacom’s executive chairman and chief executive, would likely have been deposed and asked about his knowledge of the elder Redstone’s condition.”
The report adds: “The terms of the settlement make Shari Redstone, Sumner Redstone’s daughter, his health-care proxy, and establish a family friend in the Los Angeles area as a person who will oversee the executive’s care on a day-to-day basis, according to the people familiar with the matter. A judge is expected to review the settlement, which is likely to award a substantial monetary amount to Herzer, by the end of this week.”