Judge dismisses suit over Viacom payments to Redstone

By RANDALL CHASEMarketsAssociated Press

A Delaware judge has dismissed as shareholder lawsuit challenging Viacom Inc.'s payment of more than $13 million in compensation to company founder and former chairman Sumner Redstone.

The lawsuit, dismissed Wednesday, alleged that Viacom's directors approved payments to Redstone from 2014 to 2016 despite knowing that the ailing billionaire media mogul was incapacitated and incapable of doing his job.

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The judge ruled that the claims asserted in the lawsuit were released as part of a settlement agreement Viacom entered into August 2016 to resolve three other lawsuits involving control of the company and the composition of its board.

Redstone, 94, stepped down as chairman of Viacom in February 2016.