Massachusetts judge allows Sumner Redstone case to go on
A Massachusetts judge will allow Viacom Chief Executive Philippe Dauman’s case against Sumner Redstone to proceed but will not order an immediate mental examination of the ailing media mogul.
The Thursday decision by Probate Judge George F. Phelan to take the case represents a partial victory for the Viacom chief, whom Redstone moved to oust from the trust that eventually will control Viacom and CBS Corp.
But the judge also dealt a blow to Dauman’s case by denying his request for an immediate investigation into Redstone’s current mental capacity.
The judge will, however, require Redstone’s lawyers to produce medical records for the 93-year-old billionaire by Aug. 15.
Redstone in May removed Dauman and fellow Viacom director George Abrams from his National Amusements trust, the entity that will control 80% of his media empire’s voting shares when he dies or becomes incapacitated.
Dauman and Abrams sued to block the removals, claiming Redstone was not mentally capable of making such a decision and may have been under undue influence from his daughter Shari.
The decision in Massachusetts comes the day before a hearing in Delaware in the dispute over Redstone’s apparent decision to oust five Viacom board members, including Dauman.
It’s the latest development in a series of legal battles over Redstone’s mental competence. Former companion Manuela Herzer sued him late last year after he threw her out as his healthcare agent, but that case was thrown out by a Los Angeles judge.
A trial in the Massachusetts matter is expected to take place in October.
Sumner Redstone spokesman Mike Lawrence, in a statement, thanked the judge for protecting the mogul’s “privacy and dignity” by not ordering an immediate exam, and described the lawsuit as a “specious and malicious attack.”
“We believe that Mr. Dauman and Mr. Abrams will be no more successful at thwarting Sumner’s wishes in Massachusetts than Manuela Herzer was in California,” Lawrence said.
A spokesman for Dauman and Abrams said their side also welcomed the opportunity to argue the case in court.
“We are grateful that Judge Phelan’s thoughtful opinion removes yet another of defendants’ efforts to block an investigation into the merits and, in particular, an independent determination of Mr. Redstone’s capacity and the question of undue influence,” the spokesman said.
Even if Dauman is able to persuade the judge that Redstone lacked capacity, analysts contend that the odds of his remaining in power are slight.
Trust decisions require only a majority vote, and it appears that Shari Redstone — who has clashed with Dauman — has four of the seven votes on her side, giving her the upper hand.
As the disputes wind through the court, Dauman has been trying to finalize a deal to sell 49% of Viacom’s movie studio, Paramount Pictures. Redstone adamantly opposes that plan, saying the transaction would make it more difficult to make a deal involving all of Viacom.
Follow Ryan Faughnder on Twitter for more entertainment business coverage: @rfaughnder
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UPDATES:
1:25 p.m.: This article has been updated with additional information and comments from spokesmen for Redstone, Dauman and Abrams.
This article was originally published at 10:15 a.m.
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