Share |

Sumner Redstone in court again over family feud

Sumner Redstone, head of family-owned company National Amusements, has been in court this week over claims he owes millions of dollars to his nephew, Michael, after a share sale in 1984.

Michael sold his shares in the US-based National Amusements, left to him by his grandfather and company founder Michael (Mickey) Redstone, back to the company for $15 million. However, he claims an oral trust was also created which entitles him to additional shares he never received. The trial will attempt to determine if the oral agreement was created and if so, how much Michael is entitled to.

This is not the first time this dispute has been to court; Michael's earlier claim that he was not fully compensated for selling his shares was thrown out in 2007, but the argument over the oral agreement was reopened later that year.

Sumner Redstone, 86, is no stranger to court proceedings and family feuds. He has been divorced twice, in 2008 and 2002 (click here to see our coverage of the story), and had public feuds with his children Shari and Brent. Shari was set to takeover his position as company head until he retracted his endorsement of her in 2007, meaning she may now never lead the company.

There is some good news for National Amusements and Redstone as he announced on Tuesday there was "substantial interest" from several bidders for cinemas the company has been attempting to sell since February. The privately-owned business, which is owned by both Sumner and Shari, controls some 1500 cinemas globally and holds controlling interests in media companies Viacom and CBS Corp.

Click here to take part in the new Campden FB/Mishcon de Reya survey into family business and the current economic climate

Click here to receive Campden FB's weekly email newsletter

Click here >>
Close