Viacom: Ruling Sets Up October Showdown

A Massachusetts judge allowed Viacom Chief Executive Philippe Dauman’s case against controlling shareholder Sumner Redstone to go forward Thursday, but he denied Dauman’s plea for an immediate medical exam to determine Redstone’s mental capacity, Reports The NY Post.

Dauman and fellow Viacom director George Abrams are challenging their removal from a family trust and the board of National Amusements Inc., which collectively control Viacom and CBS, on grounds that the 93-year-old Redstone was mentally incapable when he moved to oust the longtime colleagues in May.

Probate Judge George Phelan concluded “there is no need to conduct a current mental and physical examination.” Instead, he ordered Redstone’s lawyers to produce his medical records by Aug. 15. That should allow for “a speedy trial” in October, he said.

The ruling comes a day before a hearing in Delaware in the dispute over the ouster of five Viacom board members, including Dauman.

Director Fred Salerno, who is challenging the decision, claims it is an unwarranted power grab by Redstone’s daughter, Shari.

The hearing in Salerno’s suit has observers wondering if Chancery Court Judge Andre Bouchard will be satisfied with Phelan’s timetable.

“He could decide time’s a-wastin’ and order an immediate exam on his own,” a source said.

A spokesman for Sumner dismissed both suits as “disingenuous, self-interested” maneuvers.

“Sumner made the decision to remove Dauman and Abrams as trustees and National Amusements directors because he does not trust them and to replace Salerno and four other Viacom directors because he is dissatisfied with Viacom’s performance,” he said.