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MUMBAI: US media conglomerate Viacom chairman Sumner Redstone
has been sued by his nephew Michael Redstone. Michael has
also named his own father in his suit.
Media reports state that in the suit Michael says that both
his uncle and father cheated him of a stake in the media conglomerate.
Redstone accuses his uncle and father Edward of 'self- dealing',
'breaches of fiduciary duties,' and 'unjust enrichment' in buying
back shares of National Amusements (NAI) the company that controls
Viacom, CBS and Midway Games - at low prices.
In response a spokeswoman for NAI said that the allegations
are knowingly baseless regarding entirely proper transactions
that occurred decades ago. NAI will therefore defend vigorously
against what it terms as a meritless and frivolous lawsuit.
Reports add that Michael Redstone is looking for money damages
amounting to what the present value of the plaintiffs' approximate
50 per cent share of National Amusements are worth today.
Joining Michael Redstone in the suit are trustees of the
trusts representing Sumner and Edwards' children. The buybacks
occurred in 1972 and 1984 and the company is estimated to
be worth about $8 billion.
It is the second suit recently filed against Redstone by
a family member. Sumner Redstone’s son Brent filed a
suit against his father earlier this year, claiming that he
was entitled to a one-sixth interest in National Amusements,
valued at more than $1 billion. No trial date has been set
for that suit state reports.
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