CBS, Moonves To Pay $30.5-M For Insider Trading
CBS and its former president, Leslie Moonves, will pay $30.5 million as part of an agreement with the New York attorney general’s office, which says the network’s executives conspired with a Los Angeles police captain to hide sexual assault raps against Moonves.
Photo Insert: CBS is required to pay $22 million to shareholders and another $6 million for sexual harassment and assault programs.
Under the deal announced Wednesday by Attorney General Letitia James, CBS is required to pay $22 million to shareholders and another $6 million for sexual harassment and assault programs.
Moonves will have to pay $2.5 million, all of which will benefit stockholders who the attorney general said were initially kept in the dark about the allegations.
At least one of those executives — one of the few privy to an internal investigation — sold millions of dollars of stock before the allegations against Moonves became public, which the attorney general’s office said amounted to insider trading.
“As a publicly traded company, CBS failed its most basic duty to be honest and transparent with the public and investors. After trying to bury the truth to protect their fortunes, today CBS and Leslie Moonves are paying millions of dollars for their wrongdoing,” James said in a statement, calling attempts to mislead investors “reprehensible.”
A spokesperson for Paramount Global, which owns CBS, said it was “pleased to resolve this matter ... without any admission of liability or wrongdoing,” adding that the “matter involved alleged misconduct by CBS’s former CEO, who was terminated for cause in 2018, and does not relate in any way to the current company.”