CBS Faces Class Action Over Moonves Sexual Harassment Allegations
The media company allegedly made misleading statements about the integrity of its zero tolerance sexual harassment policy after recent claims were raised against CEO Leslie Moonves and others.
August 28, 2018 at 04:10 PM
3 minute read
A new securities class action suit against CBS alleges the media company failed to enforce its own sexual harassment policies in dealing with CEO Leslie Moonves, who was accused of sexual harassment by six women in an article published in The New Yorker magazine.
After the article was published, CBS' stock price fell more than 6 percent, causing “significant losses and damages” to the potential class members.
A spokeswoman for CBS declined to comment on the lawsuit.
The complaint pointed to CBS' filings with the U.S. Securities and Exchange Commission, affirmatively declaring all its directors and employees upheld its business code of conduct that included “a bias-free and harassment-free workplace.” Moonves himself issued a letter in 2016 that the complaint quotes, noting CBS' commitment to “maintaining the highest standards in everything” the company did, which was guided by “a strong and established ethical code.”
That “zero tolerance” policy specifically stated that CBS take all steps necessary and appropriate to stop harassment and discrimination when it becomes aware of allegations.
Despite repeatedly filing public statements asserting as much, the suit claimed these statements were materially false and misleading. Quoting news reports, including The New Yorker piece, the complaint alleged that during the relevant time period CBS and its top executives know about sexual harassment allegations against Moonves and others, some of which went back decades. CBS' enforcement of its own policies was inadequate to prevent the conduct, and, when it became public, would “foreseeably subject CBS to heightened legal liability and impede the ability of key CBS personnel to execute the company's business strategy,” the complaint alleged.
The New Yorker article includes four on-the-record allegations against Moonves, including one by actress Illeana Douglas. She claimed Moonves violently kissed her while holding her down during a 1997 meeting. She went on to describe the “physicality” of the assault as “horrendous.”
Three other women, a writer and two producers, allege in the article that Moonves also made unwanted and aggressive sexual advances towards them, including other claims of forcible kissing and withdrawn work opportunities after inappropriate dinner requests were denied. Other members of CBS' executive team are also alleged to have engaged in sexual harassment.
CBS has reportedly begun an internal investigation into the allegations. O'Melveny & Myers partner Daniel Petrocelli has reportedly been retained by Moonves as counsel during the internal probe.
Pomerantz LLP co-managing partner Jeremy Lieberman filed the class action against CBS. Neither he nor a firm spokesman responded to a request for comment.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllGC Pleads Guilty to Embezzling $7.4 Million From 3 Banks
Luigi Mangione Defense Attorney Says NYC Mayor’s Comments on Case Raise Fair Trial Concerns
4 minute readDistressed M&A: Mass Torts, Bankruptcy and Furthering the Search for Consensus: Another Purdue Decision
Trending Stories
- 1Tuesday Newspaper
- 2Judicial Ethics Opinion 24-85
- 3Decision of the Day: Administrative Court Finds Prevailing Wage Law Applies to Workers Who Cleaned NYC Subways During Pandemic
- 4Trailblazing Broward Judge Retires; Legacy Includes Bush v. Gore
- 5Federal Judge Named in Lawsuit Over Underage Drinking Party at His California Home
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250