Former CBS chief Leslie Moonves and Paramount will have to dish out $9.75 million to CBS shareholders after allegations of sexual misconduct.
The agreement is pending the approval of New York Attorney General Letitia James.
"While Defendants neither admit nor deny any liability or wrongdoing, Defendants will agree to provide additional monetary relief to be distributed as restitution to shareholders, consisting of $7.25 million from Defendant CBS Corporation and $2.5 million from Defendant Leslie Moonves, totaling $9.75 million," attorney Todd Cosenza wrote in a letter to U.S. District Judge Valerie Caproni.
In September 2018, Moonves resigned from his position over allegations of sexual misconduct. That December, CBS denied his $120 million in severance after he was deemed fired for cause.
The New Yorker broke the story, alleging Moonves sexually harassed six women and allowed such misconduct to grow within the company. The alleged sexual misconduct occurred between the 1980s and the late 2000s. Over 30 former and current employees came forward.
Moonves expressed regret but denied the claim the company had a culture of harassment.
"Throughout my time at CBS, we have promoted a culture of respect and opportunity for all employees and have consistently found success elevating women to top executive positions across our company," Moonves said in a statement. "I recognize that there were times decades ago when I may have made some women uncomfortable by making advances. Those were mistakes, and I regret them immensely."
The Hollywood Reporter, which initially reported the $9.75 million settlement, detailed what led to a securities class action against CBS executives and board members. It alleged shareholders were misled about how the company handles workplace sexual harassment complaints. The suit was settled earlier this year.
"We reached an agreement with the plaintiffs to settle for $14.75 million, which will be paid by the Company's insurers," the SEC filing notes. "The settlement, which includes no admission of liability or wrongdoing by the Company, was granted preliminary approval by the Court on May 13, 2022, and is subject to final approval."
The final approval hearing is set for Nov. 3, but CBS is requesting an adjournment until later this month in order to finalize the agreement with the attorney general's office.
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