DOVER, Del. (AP) - CBS Corp.'s controlling shareholder has fired back at the company over a board attempt to dilute the shareholder's stock voting power, the latest move in an escalating legal battle for control of the media company.
In complaint filed Tuesday in Delaware's Chancery Court, National Amusements Inc. argues that a CBS board vote to approve a dividend that would drastically reduce NAI's voting stake in CBS was invalid.
NAI claims the vote violated CBS's bylaws and corporate charter, and that CBS board members violated their fiduciary duties to stockholders. It also argues that the vote was based on recommendations of a special board committee that had exceeded its authority.
The filing of the complaint comes after CBS asked the judge last week to declare that the vote was "effective and permissible."
