MANHATTAN (CN) – A shareholders class action claims CBS inflated its share price through false and misleading statements this year. CEO Leslie Moonves “failed to disclose that adverse market conditions materially impaired CBS’s operations, expected cash flow and the value of its intangible assets,” the plaintiffs say in Federal Court.
They claim CBS’s “lived intangible assets and goodwill” represented “more than 70% of the company’s total assets,” and “130% of CBS’s total equity at the start of the class period.”
“CBS’s failure to timely write down the value of its overstated assets caused the Company’s reported operating results during the Class Period to be materially inflated,” the class claims.
The period for purchasers of CBS common stock is from Feb. 26 to Oct. 10 this year. Besides CEO Moonves, defendants include CFO Fredric Reynolds, vice president & Chief Accounting Officer Susan Gordon, and senior VP and Treasurer Joseph Ianiello.