CBS was hit with a class-action suit today, with Variety reporting that the action stems from allegations against CBS Corp. Chairman and CEO Leslie Moonves. The shareholder suit reportedly argues that the company misled investors when it failed to disclose sexual harassment allegations against Moonves.
“In the securities lawsuit filed on Monday, shareholder Gene Samit alleges that CBS made a material omission by failing to disclose the allegations against Moonves. The suit also alleges that CBS failed to uphold its “zero tolerance” policy toward sexual harassment and discrimination,” Variety reports.
The report notes that the price of CBS stock dropped 6%, to $54.01 a share on news of the New Yorker story July 27 containing allegations against Moonves. As of this morning, the stock was trading at $53.62, Variety noted.
“The class action suit was brought by Jeremy A. Lieberman, J. Alexander Hood, and Patrick V. Dahlstrom of Pomerantz LLP, a firm that specializes in shareholder class action suits,” the story reports. “The suit seeks to represent CBS stockholders who purchased shares between February 14, 2014, and July 27, 2018.”