“The Securities and Exchange Commission challenged CBS’s interpretation of a rule that forms the cornerstone of its legal challenge to bylaw changes made by the Redstone family, according to regulatory filings made today,” Deadline reports.
“The SEC’s division of corporate finance asked CBS to explain its interpretation of SEC rules as imposing a 20-day delay before any bylaw change could take effect,” the story reports. “Federal regulators appeared to reject the media company’s explanation about regulations requiring shareholder notification.”
In a letter dated June 13, the SEC states: “We are unable to agree with the legal conclusions set forth in your response.”
Deadline adds: “The SEC’s correspondence with CBS doesn’t have a direct impact on its pending suit, which proceeds in Delaware. Hearings in the case determining control of CBS are due to start in the fall.”