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CBS, Moonves Must Pay $30.5 Million in Insider Trading

BOBBY CAINA CALVAN and STEFANIE DAZIO – Associated Press

NEW YORK (AP) — CBS and its former president, Leslie Moonves, will pay $30.5 million as part of an agreement with the New York Attorney General’s Office, in which network executives colluded with the Los Angeles Police Chief to He said he covered up the sexual assault allegations. Moonves.

Under the deal announced Wednesday by Attorney General Letitia James, the broadcasting giant will have to pay $22 million to shareholders and another $6 million for its sexual harassment and assault program. million dollars, all of which would benefit shareholders who the Attorney General said were not initially informed of the allegations.

At least one of these executives (one of the few involved in an internal investigation) sold millions of dollars in stock before the allegations against Moonves became public.

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“As a publicly traded company, CBS has failed in its most basic obligations of honesty and transparency with the public and investors. CBS and Leslie Moonves are paying millions of dollars for their wrongdoing,” James said in a statement, calling the attempt “reprehensible” to mislead investors.

A spokeswoman for Paramount Global, which owns CBS, said, “We are pleased to be able to resolve this matter without any admission of liability or wrongdoing,” adding, “This matter is a result of allegations of wrongdoing by the former CEO of CBS. It was from 2018 and has nothing to do with the current company.”

Moonves resigned from CBS on September 9, 2018.

In a document outlining the findings of the investigation, the Attorney General’s Office details the alleged plot by the Los Angeles Police Chief to cover up the allegations against Mr. Moonves.

A police chief, whose name was not named in the report, leaked information to CBS that a woman had filed a complaint against Mr Moonves, according to the documents.

The captain then met personally with Mr. Moonves and another CBS executive and provided confidential information about the investigation, the people said. The captain instructed officers investigating the complaint to “advise” the woman not to bring her allegations to the media, according to the attorney general’s office. I got in touch with the official.

Either way, when the allegations finally became public and Moonves resigned, the captain sent a note to his CBS contacts saying he “worked hard to avoid this day.”

The document also states that he wrote another note to Moonves saying, “I am deeply sorry that this has happened. I will always stand by you, stand by you and pledge allegiance

The Attorney General’s Office said it found text messages between the police chief, CBS executives and Mr. Moonves that indicated efforts to keep the complaint private.

The captain, the commanding officer of the police department’s Hollywood division, first contacted CBS officials by calling the network’s senior vice president of talent relations and special events, identified as Ian Metrose in court documents. I have notified you of allegations of illegal activity.

Metrose previously hired Captain as one of Moonves’ security aides at the Grammy Awards from 2008 to 2014, documents say.

“I know we haven’t spoken in a while. According to the Attorney General’s Office, I’m the captain of LAPD Hollywood,” the police captain told Metrose in a voicemail message. Please call. We will provide some of the details and let you know what the allegations are before they hit the media or out. “

An email sent to Metrose was not immediately returned on Wednesday. And attorneys representing CBS and Moonves didn’t immediately return requests for comment.

Los Angeles Police Department said Wednesday it was investigating the captain’s behavior, now retired, and was cooperating with New York authorities.

“Most appalling is the alleged breach of trust by LAPD members to the most vulnerable victims of sexual assault. This undermines public trust and does not reflect our values ​​as an organization. ” said Chief of Staff Michelle Moore.

Moonves’ resignation comes amid complaints from multiple women about alleged sexual misconduct. Some accusers claimed the Moonves forced them to perform oral sex. The New Yorker reported at the time that at least one of the women, a television executive, had filed a criminal complaint with the Los Angeles Police Department.

Moonves admitted to having affairs with three women, but said they had reached an agreement. In his statement at the time, he denied attacking anyone, saying “decades of false allegations are now being made against me.”

A Los Angeles County district attorney denied criminal charges against Moonves in 2018.

CBS is also required under a contract with the Office of the Attorney General to reform its personnel practices regarding sexual harassment.

The New York Attorney General’s Office has identified Gil Schwartz, senior executive vice president and chief communications officer at CBS, as the executive who sold nearly $8.9 million in stock. Schwartz has since passed away.

Dazio reports from Los Angeles. Associated Press writer Lynn Elber also contributed to this article from Los Angeles.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

https://theindependent.com/news/national/cbs-moonves-must-pay-30-5-million-for-insider-trading/article_0db5c77a-e437-5dbb-a34e-776f84d81004.html CBS, Moonves Must Pay $30.5 Million in Insider Trading

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