Shortly afterward, the Redstones kicked Mr Dauman and fellow board member George Abrams off the trust, setting off the legal battles.
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Phelan urged attorneys for the various sides to see if they could resolve some of Keryn Redstone’s concerns, such as by amending trust documents or arranging for her to speak with her grandfather via a video link.
Other parties in litigation that has sprawled across three states say that Keryn’s case is merely a ploy to help her friend and Sumner Redstone’s ex-girlfriend, Herzer, after she previously passed on a $30 million settlement offer in yet another piece of litigation.
In return, Keryn Redstone will drop her opposition to a settlement announced last weekend that saw Viacom Inc. chief executive Philippe Dauman resign, and stay her request for a mental examination of her grandfather.
A MA judge on Friday told attorneys to see if they could agree to resolve at least parts of a lingering family dispute over the fate of the empire built by Sumner Redstone, the controlling shareholder of Viacom Inc VIAB.O . “I think it’s a reasonable and optimal resolution”. As specified in his contract, Dauman after parting ways with Viacom will receive a severance package of $72 million.
Keryn Redstone’s motion to keep the case alive will be heard Friday morning by MA family and probate Judge George Phelan.
The tipping point, Stewart noted, came about when board members had become aware of Dauman engaging in settlement talks with the Redstone’s without telling the lead independent director or the board members he was doing so.
“Keryn Redstone’s Los Angeles lawyer, Pierce O’Donnell, had argued that tensions within the Redstone family had already put Keryn Redstone at a disadvantage”, the story reports.
Earlier Friday, Phelan had also questioned the about-face by Dauman and Abrams, noting the pair’s attorneys had argued “passionately” and “very recently” that Shari Redstone was overturning her father’s carefully laid, longtime estate plans for her own gain. Phelan had set a trial date in September before the settlement.
New York Times columnist Jim Stewart, who penned an article detailing the specifics of Dauman’s exit, joined Friday morning’s “Squawk on the Street” on CNBC to explain how the decision was made.
Ms Redstone said in a statement she was overjoyed that she will be reunited with her grandfather.
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Dauman succeeded his mentor as the chairman of the board and Viacom this year and it brought about a hard situation as Redstone’s remaining pay was eliminated. Mr Dauman’s decision to sell a stake in Viacom’s Paramount movie studio angered Mr Redstone, who fought a bruising battle to acquire the studio two decades ago. Sumner and his daughter then moved to unseat Dauman from the board and from their family’s business affairs.
