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Viacom CEO sues over Redstone’s acts
Ousted from trust, Dauman asserts billionaire mentally ill
By Emily Steel
New York Times

NEW YORK — Viacom chief executive Philippe P. Dauman struck back in court Monday in the vicious battle over the future of Sumner M. Redstone’s $40 billion media empire.

In a lawsuit filed in Massachusetts, Dauman and George Abrams, a Viacom director, challenged their unexpected removal Friday from the trust that will control Redstone’s media companies after he dies or is declared incompetent.

The suit depicts Redstone, who turns 93 Friday, as suffering “profound physical and mental illness’’ and under the undue influence of his long-estranged daughter, Shari Redstone, with whom he recently reconciled.

The legal action seeks to immediately block the removal of Dauman and Abrams from the trust and invalidate their removal as directors of the theater chain company National Amusements, through which Sumner Redstone controls his media conglomerate.

Redstone’s attorneys responded with a separate lawsuit asking Los Angeles’ Superior Court to affirm Redstone’s right to have made the changes.

Dauman’s and Abrams’s lawsuit, filed in Norfolk County Probate and Family Court, intensifies the focus on the question of Sumner Redstone’s mental capacity. In November, a former companion of Redstone alleged he was not competent and was under the influence of his daughter when he removed the companion, Manuela Herzer, from a directive that would have given her supervision of his health care. That suit was dismissed two weeks ago, in favor of Redstone.

Dauman testified to Redstone’s engagement and attentiveness during the course of that legal battle.

Now Dauman is claiming Redstone lacked the capacity to make those decisions and was manipulated by his daughter. The suit asserts Redstone’s physical and mental health has declined precipitously in the past six months and that he is entirely dependent on his daughter for food, care, and medicine.

It details how Redstone can no longer stand, walk, read, write, or speak coherently, and how he requires a feeding tube.

Dauman and Abrams claim in the suit that Redstone’s ability to “understand and assess the consequences of his actions is limited.’’

They also allege Shari Redstone made changes to Sumner Redstone’s last will and testament, including her appointment in April to a directive that would give her supervision of her father’s health care decisions.

“After years of estrangement, she has inserted herself into his home, taken over his life, and isolated him from anyone not under her control, including longtime business colleagues,’’ Dauman said in a statement. “Shari’s actions amount to an unlawful corporate takeover, and if effectuated, could have far-reaching consequences for thousands of shareholders and employees of Viacom.’’

In an statement Nancy Sterling, a spokeswoman for Shari Redstone, said it was “absurd for anyone to accuse Shari of manipulating her father.’’

“Sumner makes his own decisions regarding whom he wants to see, both in his home and elsewhere, and he has his own team of independent advisers to counsel him on corporate and other matters.’’

Shari Redstone has publicly opposed Dauman’s leadership of Viacom. Viacom has reported persistently weak earnings, and its stock price has plunged about 40 percent in a year.

The trust, intended to benefit Sumner Redstone’s five grandchildren, wields enormous power. The seven voting members could move to oust the leadership of Viacom and CBS and also make plans to merge or sell the companies. Through National Amusements, Sumner Redstone controls about 80 percent of the voting stock in Viacom and CBS, two of the world’s largest entertainment companies.