Report: CBS CEO Leslie Moonves Accused Of Misconduct

CBS stock plunged Friday on rumors that a bombshell report would be published that alleged CBS Corp. CEO Les Moonves sexually harassed multiple women more than a decade ago, according to The LA Times.

The article, published Friday afternoon by the New Yorker magazine, said six women had accused Moonves of sexually harassing them and that their careers suffered after they rebuffed his advances.

Even before the story came out, CBS’ independent directors announced the company had launched an investigation of any inappropriate behavior. The directors said they plan to support Moonves and his management team as the investigation proceeds.

“All allegations of personal misconduct are to be taken seriously,” CBS’ independent directors said in the statement, which didn’t specifically mention the 68-year-old Moonves or the report. “The Independent Directors of CBS have committed to investigating claims that violate the company’s clear policies.”

“If the claims turn out to have merit, then we would expect that Moonves would almost certainly be forced to step down from the CEO role and the board,” media analyst Doug Creutz wrote in a note to investors. “This puts Moonves, the company, and the stock in a very difficult position.”

Moonves was on a tightrope even before the claims surfaced. Since May, Moonves and other members of CBS’ board have been locked in a bitter dispute with CBS’ controlling shareholder, Shari Redstone, who has agitated for big changes at CBS and has pressed for a merger with Viacom Inc., which her family also controls.

Les Moonves

CBS said there have been no reports of sexual harassment during Moonves’ long tenure. Moonves quickly offered his own statement:

“Throughout my time at CBS, we have promoted a culture of respect and opportunity for all employees, and have consistently found success elevating women to top executive positions across our company,” Moonves said. “I recognize that there were times decades ago when I may have made some women uncomfortable by making advances. Those were mistakes, and I regret them immensely. But I always understood and respected — and abided by the principle — that ‘no’ means ‘no,’ and I have never misused my position to harm or hinder anyone’s career.”

CBS stock fell 6% to $54.01. CBS stock is down 8% this year, in part due to frequent rumors that journalists, including New Yorker writer Ronan Farrow, were looking into allegations of Moonves’ alleged conduct.

The New Yorker report, written by Farrow, detailed accounts of four of the women who described “forcible touching or kissing during business meetings.” The incidents allegedly occurred in the 1980s, 1990s and in 2006. Two of the women alleged that Moonves “physically intimidated them or threatened to derail their careers.” The women said Moonves became “cold or hostile” after they rejected his advances and that they believed their careers were damaged.

“He has gotten away with it for decades,” writer Janet Jones was quoted in the article. She alleged that she had to push Moonves away after he forcibly kissed her at a work meeting in 1985. “And it’s just not O.K.”

Actress Illeana Douglas, 53, who has appeared in HBO's "Six Feet Under" and such films as "Goodfellas," alleged that Moonves pinned her on a couch and began "violently kissing her" during a meeting in his office in 1997 when she was cast in a network pilot. She lost her job on the show, and said Moonves told her she would "never work at this network again."

CBS said that Moonves acknowledged trying to kiss the actress, but denied assaulting her.

Moonves has been married to Julie Chen, who hosts the CBS’ daytime show “The Talk,” since 2004. He married her shortly after his divorce from Nancy Wiesenfeld, his wife of more than 25 years, had been finalized.

pic.twitter.com/cW1vUhCIs0

— Julie Chen (@JulieChen) July 27, 2018

The controversy comes amid a particularly bitter public fight between Moonves and Redstone. She has overseen the family’s voting stake in CBS and Viacom since 2016, when her father, Sumner, became ill.

The board members seemed to suggest — but did not state — that they believed Redstone was planning to use the report to discredit Moonves. Some within CBS believe that Redstone might have played a role in the article by contributing information.

“The timing of this report comes in the midst of the company’s very public legal dispute,” the CBS directors said.

Redstone flatly denied that she was involved.

CBS Corporation is the parent company of CBS News.

In a statement before The New Yorker story was published, CBS Corporation's Independent Directors said they would investigate the claims. "All allegations of personal misconduct are to be taken seriously," said the statement. "The Independent Directors of CBS have committed to investigating claims that violate the Company's clear policies in that regard. Upon the conclusion of that investigation, which involves recently reported allegations that go back several decades, the Board will promptly review the findings and take appropriate action."