Claims Challenging Payments to Former Viacom Chairman Dismissed

On Oct. 25, the Delaware Court of Chancery dismissed derivative claims brought against current and former members of the board of directors of Viacom Inc., including six independent directors represented by Skadden. The stockholder complaint challenged certain compensation payments made to Viacom chairman emeritus and controlling stockholder Sumner Redstone from 2014 through 2016. The court found that the plaintiff’s claims were released as part of a settlement agreement entered in connection with a statutory proceeding brought by Viacom’s lead independent director to invalidate the purported removal of five Viacom directors. The action was dismissed with prejudice as to the named plaintiff.