New York
CNN Business
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Former CBS chief executive Leslie Moonves and CBS on Wednesday reached a $30.5 million settlement with the office of New York Attorney General Letitia James.
The settlement is part of a state investigation alleging that “CBS and its senior management were aware of multiple sexual assault allegations made against Mr. Moonves and intentionally concealed these allegations from regulators, shareholders and the public for months.”
“The investigation also revealed that another senior CBS executive – one of the few people aware of the allegations – sold millions of dollars worth of CBS stock in the weeks before the allegations were released,” the statement said Wednesday. the attorney general’s office in a statement. .
Moonves resigned as general manager of CBS in 2018 following multiple allegations of sexual misconduct. The exit marked the end of Moonves’ tenure at the top of one of the world’s most powerful media corporations. Moonves denied the allegations.
The agreement with the New York Attorney General requires CBS to pay $28 million, “of which $22 million will go to CBS shareholders and $6 million to strengthen reporting and investigation mechanisms for harassment complaints. and sexual assault,” the attorney general’s office said in a statement.
Moonves himself must pay $2.5 million, which will also go to CBS shareholders.
A representative for Moonves did not immediately return a request for comment.
CBS and Viacom merged to become ViacomCBS in 2019. The merger was a reunion for the two companies, which separated in 2006. The company then changed its name to Paramount Global earlier this year.
“We are pleased to resolve this matter regarding the events of 2018 with the New York Attorney General’s office, without any admission of liability or wrongdoing,” a Paramount Global spokesperson told CNN Business. “The case involved alleged misconduct by the former CEO of CBS, who was terminated for cause in 2018, and has no connection to the current company.”
The Attorney General said in her statement that “CBS and Leslie Moonves’ attempts to silence victims, lie to the public, and mislead investors can only be described as reprehensible.”
“As a publicly traded company, CBS failed in its most basic duty to be honest and transparent with the public and investors,” she added. “After trying to bury the truth to protect their fortunes, CBS and Leslie Moonves are now paying millions of dollars for their misdeeds.”
The press release also says that Gil Schwartz, the former CBS communications director, sold millions of dollars worth of stock weeks before the allegations became public. Schwartz died in 2020.
The New York AG office also claimed on Wednesday that the investigation “revealed that a Los Angeles Police Department captain informed CBS executives of a confidential sexual assault complaint against Mr. Moonves.”
This included text messages between the captain, a CBS executive, and Moonves, which “revealed that the LAPD captain shared confidential information and worked with CBS executives for months to keep the complaint from becoming public.”
The LAPD said Wednesday it is “fully cooperating with the New York and California attorney general’s offices and has also opened an internal investigation regarding the retired commanding officer’s conduct as well as to identify any other members of organization that may have been involved.”
“What is most appalling is the alleged breach of trust of a sexual assault victim, who is among the most vulnerable, by a member of the LAPD,” Chief Michel Moore said in a statement. “It erodes public trust and does not reflect our values as an organization.”
The New York AG office said it “has shared all relevant information about this investigation with the California Attorney General’s office.”
The California attorney general could not immediately be reached for comment.