Viacom and CBS hit with shareholder lawsuit over chairman's condition

Viacom Inc. and CBS Corp. board members are being sued by an investor who contends the boards of the two media companies are protecting the interests of Executive Chairman Sumner Redstone at the expense of corporate shareholders.

E.F. Greenberg, who has owned CBS and Viacom shares since 2010, names in the suit defendants Redstone, Viacom CEO Philippe Dauman, CBS CEO Leslie Moonves and Shari Redstone, the media mogul's daughter who serves as vice chairwoman of the two media companies.

The 92-year-old Redstone controls nearly 80 percent of the voting shares of the two separate companies. The billionaire, who has not participated in public corporate events for more than 18 months, is said to be failing in health.

In the suit, Greenberg alleges the boards have concealed the state of Redstone's condition and have not come up with a succession plan.

It also brings into question Redstone's compensation. He was paid an estimated $169 million between 2012 and 2014 even though he was ""physically and mentally incapacitated," according to the lawsuit.

"This lawsuit is without merit," Viacom spokesman Carl Folta said.

Read more from The Los Angeles Times.