A key court ruling today in the increasingly bitter legal battle between CBS Corp. and Shari Redstone went Redstone’s way when Chancellor Andre Bouchard of Delaware’s Court of Chancery denied a request from CBS for a temporary restraining order against Redstone’s National Amusements.
“In his ruling, Chancellor Bouchard said that it wasn’t necessary for the court to grant the restraining order — one CBS argued was necessary to prevent Ms. Redstone from replacing directors, to the harm of other shareholders — because Delaware law allows the company to challenge such board removals,” The New York Times reports.
CBS Corp. responded with the following statement:
“Today’s ruling does not alter in any way the unyielding commitment of CBS and its Board of Directors to continue to act in and to protect the best interests of all CBS shareholders. Notably, the ruling clearly recognizes that we may bring further legal action to challenge any actions by NAI that we consider to be unlawful, and we will bring such action if needed to protect the interests of all shareholders. We remain confident that we will prevail in the lawsuit previously filed by CBS and the members of its Special Committee.
“As previously announced, the CBS Board will hold a meeting at 5PM today to consider declaring a dividend of shares of Class A common stock to all of the Company’s Class A and Class B stockholders, as is permitted under CBS’ charter. This dividend would more closely align economic and voting interests of CBS stockholders without diluting the economic interests of any stockholder.”