CBS Crushed As Sexual Misconduct Expose Targets CEO Moonves

CBS shares are down over 6% following reports CEO Les Moonves will be accused of unwanted kissing and touching in a New Yorker magazine article set to be published Friday.

Bloomberg reports that the allegations in the article by Ronan Farrow involve incidents that go back, in part, more than 20 years, the Hollywood Reporter said, citing sources with knowledge of the matter who it didn’t identify. Farrow was among the reporters who first broke news on the sexual-misconduct allegations against Harvey Weinstein last year.

Share are down over 6% back to 6-week lows...

 

CBS directors said in a statement, "All allegations of personal misconduct are to be taken seriously."

Here's the full statement:

"All allegations of personal misconduct are to be taken seriously.

The Independent Directors of CBS have committed to investigating claims that violate the Company's clear policies in that regard. Upon the conclusion of that investigation, which involves recently reported allegations that go back several decades, the Board will promptly review the findings and take appropriate action. The timing of this report comes in the midst of the Company's very public legal dispute.

While that litigation process continues, the CBS management team has the full support of the independent board members. Along with that team, we will continue to focus on creating value for our shareowners."

Notably, the allegations, some decades-old, are surfacing as Moonves and CBS are embroiled in a legal battle with parent company National Amusements Inc. for control of the company.