Samit v. CBS Corporation et al 1:18-cv-07796 — On August 27, 2018, investors sued CBS Corporation (“CBS” or the “Company”) in United States District Court, Southern District of New York. Plaintiffs in the CBS Class Action allege that they acquired CBS stock at artificially inflated prices between February 14, 2014 and July 27, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during the time in question. For more information about the CBS Lawsuit, please contact us today!

Summary of the Allegations

Company Background

The Company (NYSE:CBS) is a “mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world.”

CBS claims that it owns “the most-watched television network in the U.S.,” and that it has “businesses with origins that date back to the dawn of the broadcasting age.” Its businesses include but are not limited to: CBS Television Network, The CW, Network Ten Australia, CBS Television Studios, CBS Studios International, and CBS Television Distribution.

Summary of Facts

CBS and two of its senior executives and/or directors now stand accused of deceiving investors by lying or withholding critical information about the Company’s business, operational and compliance policies during the Class Period.

Specifically, they are accused of omitting truthful information about acts perpetrated by certain executives, and the efficacy and enforcement of certain policies from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused CBS stock to trade at artificially inflated prices during the time in question.

The truth emerged on July 27, 2018, when “media outlets reported that The New Yorker would shortly publish an article detailing allegations of sexual misconduct by CBS chairman and chief executive officer Leslie Moonves and other executives at the Company.”

A closer look…

As alleged in the August 27 complaint, the Company and/or Individual Defendants repeatedly made false and misleading public statements during the Class Period.

For instance, on a form filed with the SEC on April 11, 2014, the Company referenced its Business Conduct Statement (BCS). Section VI of that document states in pertinent part: “CBS has a ‘zero tolerance’ policy for sexual harassment…”

On another form filed with the SEC on April 10, 2015, the Company again referred to its BCS, saying in relevant part: “The Company’s Business Conduct Statement (BCS) sets forth the Company’s standards for ethical conduct that are expected of all directors and employees of the Company.”

Finally, on a form filed with the SEC on February 17, 2017, the Company said in pertinent part: “The Company’s business depends upon the continued efforts, abilities and expertise of its chief executive officer and other key employees and entertainment personalities.”

Impact of the Alleged Fraud on CBS’s Stock Price and Market Capitalization

The following chart illustrates the stock price during the class period:

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is October 26, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in CBS common stock using court approved loss calculation methods.

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About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.