Judge allows suit to proceed on Redstone competency

A Massachusetts judge Thursday ruled that a lawsuit may proceed challenging the mental competency of media mogul Sumner Redstone when he ousted longtime business ally Philippe Dauman from his trust.

The ruling is the latest twist in the drama surrounding the health and mental capacity of 93-year-old Redstone, who controls entertainment conglomerate Viacom as well as television group CBS.

Judge George Phelan of the Massachusetts Probate Court said the state has jurisdiction to rule on Redstone's competency when he reorganized the trust for his holding company, National Amusements.

Dauman, who is chief executive of Viacom, and fellow Viacom board member George Abrams sued in Massachusetts alleging that Redstone's daughter Shari effectively wrested control of her father's business empire with the nonagenarian unable to act competently.

The judge did not rule on the substance of the case but said the case may proceed to determine if Redstone is mentally fit to make decisions on National Amusements, which is the hub for the other major companies and his personal fortune of some $5.4 billion.

Phelan stopped short of ordering an immediate medical examination of Redstone but called for the records of his most recent exams to be produced by August 15.

Dauman and Abrams claimed in their lawsuit that Redstone is "suffering from overwhelming physical ailments, including an inability to speak, stand, walk, eat, write or read."

- 'Disingenuous, self-interested effort' -

Mike Lawrence, a spokesman for Sumner Redstone, said in a statement that the lawsuit "is a disingenuous, self-interested effort by Philippe Dauman and George Abrams to hold on to their power" and "to preserve their richly compensated positions at Viacom despite their dismal performance."

A statement from Dauman and Abrams welcomed the decision, adding that "Judge Phelan acknowledges the seriousness of the allegations and the need for a speedy trial in Massachusetts. We also appreciate that he is allowing prompt access to medical records and immediate discovery."

Keryn Redstone, a granddaughter of the mogul, has claimed he has been manipulated by her aunt and says she believes her grandfather ought to be found "mentally incapacitated."

In a statement through her attorney she said she believes the judge will find that her grandfather "was manipulated by, lied to, and unduly influenced by Shari in her unquenchable thirst to illegally seize control of her father's media empire."

The case is part of a spate of litigation surrounding the Redstone empire, whose future has been clouded by the disputes involving his family and business associates.

Redstone was executive chairman of both Viacom and CBS before stepping down in February.

In a separate case in Delaware, a US judge has temporarily allowed five directors of Viacom to keep their board seats for now, blocking Redstone's efforts to oust them.

In California, a judge has dismissed a suit by Redstone's ex-girlfriend Manuela Herzer alleging he was incapable of making the decision to kick her out of his house, and requesting that she be reappointed his caretaker.