This is a securities class action lawsuit against CBS and certain of its officers and directors.
CBS operates as a mass media company in the United States and internationally. It operates in four segments: Television, Radio, Outdoor, and Publishing.
The class action lawsuit alleges that CBS made materially false and misleading statements about CBS' financial condition and operating results. Specifically, CBS failed to disclose:
(i) that adverse market conditions had materially impaired CBS's operations, expected cash flows and the value of its intangible assets, including goodwill;
(ii) that CBS's reported goodwill and intangible assets, which ranged between 69% - 73% of CBS's total assets and 131% - 137% of CBS's total equity during the Class Period, were materially overstated;
(iii) that CBS reported equity capital during the Class Period that was materially overstated;
(iv) that, as a result of its failure to timely write down impaired intangible and goodwill assets, CBS's financial results during the Class Period were materially overstated;
(v) that CBS's financial statements were not prepared in accordance with Generally Accepted Accounting Principles and, therefore, were materially false and misleading;
(vi) that CBS's balance sheet was not "pristine," "extremely strong" or "extremely healthy";
(vii) that CBS's cash flow from operations was declining at a significant rate; and
(viii) that CBS' positive statements concerning CBS's free cash flow, including defendant Moonves's representation that CBS "clearly has the right broad range of assets to produce outstanding free cash flow quarter after quarter, year after year," were materially false and misleading and without reasonable basis.
On October 10, 2008, CBS issued a press release announcing that it "expects to incur a non-cash impairment charge of approximately $14 Billion, in the third quarter of 2008."
In response to this announcement, the price of CBS common stock declined from $10.14 to $8.10, on very heavy trading volume.
Name (Stock Symbol)
CBS Corporation (CBS)
CBS Corporation operates as a large media company in the United States and internationally.CBS Corporation operates in five segments: Television, Radio, Outdoor, Interactive, and Publishing.
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