Dauman, Abrams Move For ‘Immediate’ Mental Evaluation Of Sumner Redstone

Bouchard said he would aim to schedule another hearing in July, but signaled that he also wants to see what transpires with the lawsuit in MA.

“Mr. Redstone developed a succession plan that would empower professionals – rather than family members who did not share his business acumen – to control and manage [National Amusements Inc.], Viacom and CBS”, the filing said.

Dauman, joined by fellow Viacom directors George Abrams and Frederic Salerno have sued Redstone and his daughter Shari Redstone, over moves by Redstone to remove them from various boards and trusts controlling a $40 billion media empire.

The filing asserts that the trust, which will inherit Sumner Redstone’s shares in Viacom and CBS after his death, was structured to ensure that independent (or what the trust calls “disinterested”) trustees would be in control as long as Sumner, Phyllis, Shari and her brother, Brent, were alive.

Bouchard said he would not move quickly to rule on the removal of the five directors, noting the ongoing litigation in the MA court as well as in California over the company. The Redstone side says yes, while the opposition believes daughter Shari has simply been manipulating her ill father.

The company’s financial performance remains poor, and Viacom just warned that earnings will be hurt due to the box office flop of Paramount’s latest “Teenage Mutant Ninja Turtles” movie.

Viacom also expects domestic ad sales to be about 4% lower in the quarter for a year before.

National Amusements left a few hints as to what would happen if the DE court approved its new board members by not replacing Tom Dooley, Viacom’s Chief Operating Officer.

The high-stakes legal dispute that will determine the future of Viacom is playing out in multiple theaters, and the question that comes up in each jurisdiction is whether 93-year-old Sumner Redstone will be examined for mental competency. In the papers, Dauman notes that a judge in DE is waiting on the MA court to look into Redstone’s mental capacity and his ability to make decisions before weighing in on a move to eject Dauman and other directors from Viacom’s board.