According to Bloomberg, the decision by Delaware Chancery Court Judge Andre Bouchard allows the case by ousted Viacom director Fred Salerno to go forward, with a trial scheduled for October.
“What’s at stake here is nothing less than the governance of a multibillion-dollar company,” Bouchard said. “My focus is whether a 90-year-old man in a rapidly declining state of health had the mental capacity” to take the actions attributed to him.
Redstone is facing accusations that his mental health has declined to a point where he’s being influenced by his daughter, Shari Redstone, upsetting years of careful estate and succession planning. The fight over the billionaire’s holdings has overshadowed Viacom for months, delaying deals and leaving many questioning what’s next for the company, which owns Paramount Pictures, MTV and CBS Corp.
Redstone controls about 80 percent of the voting stock at Viacom and has a similar stake in CBS through his holding company National Amusements Inc.
Read More Now