Finance

Report: Redstone Settlement Talks Hit Snag

Talks stall as May trial date approaches 4/12/2016 1:30 PM Eastern

Sumner Redstone may have his day in court after all.

 

Talks between the former Viacom chairman’s lawyers and attorneys for his ex-companion Manuela Herzer have broken down, according to The Los Angeles Times. The breakdown could lead the parties into court to determine the media mogul’s mental competency.

 

The Redstone camp has been trying to avoid going to court, and as early as last week were said to have hammered out the basic framework of a settlement ahead of the scheduled May 6 trial date. But according to the Times, leaks of certain details of that settlement – including a proposed $25 million to $30 million cash payment to Herzer – have stalled talks.

 

“We have hit a snag,” Herzer’s attorney Pierce O’Donnell told the paper. “We will see what happens.”

 

The settlement deal would have avoided what could be a messy and embarrassing trial for Viacom’s largest shareholder. Herzer filed her suit in November, claiming the media mogul was a “living ghost” and had little awareness of his surroundings.

 

Redstone has relinquished his chairman titles at both CBS and Viacom, but still controls 80% of the companies’ votes.  

  

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