Redstone sues ex-girlfriends, says had to
borrow from National Amusements
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[October 26, 2016]
By Dan Levine
(Reuters) - Media mogul Sumner Redstone on
Tuesday sued two ex-girlfriends for civil claims including elder abuse,
alleging he was forced to borrow $100 million from the private company
that holds his voting shares of CBS Corp and Viacom Inc to cover tax
obligations on gifts he gave to the women.
The lawsuit, filed in Los Angeles Superior Court, seeks about $150
million that Redstone's lawyers say he gave to Manuela Herzer and Sydney
Holland. Redstone's lawsuit is the newest front in a nearly year-long
litigation war between the 93-year-old billionaire former Viacom
chairman and Herzer.
Ronald Richards, an attorney for Herzer, said the lawsuit has no merit.
"All of the gifts Mr. Redstone made to my client and to Sydney Holland
were made with his full knowledge and blessing," he said.
Holland, in a statement, called the lawsuit "fictional revisionist
history." Redstone’s attorneys and doctors "vetted and approved all
payments" she received, the statement said.
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Herzer had challenged her removal as Redstone's designated healthcare
agent last year, saying Redstone was not competent to make the decision.
A Los Angeles judge dismissed Herzer's case in May, saying Redstone made
it clear in a videotaped deposition that he did not want Herzer making
decisions about his care. Herzer has appealed that ruling.
In the lawsuit filed on Tuesday, Redstone says Herzer and Holland
engaged in a years-long scheme to drain his wealth by running up credit
card bills, selling stock and changing his estate plan.
National Amusements owns 80 percent of the voting shares of CBS and
Viacom, but the media mogul controls stock options and other shares of
the companies, the lawsuit said.
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![](../images/102616pics/news_J13.jpg)
Sumner Redstone, executive chairman of CBS Corp. and Viacom, arrives
at the premiere of 'The Guilt Trip' in Los Angeles December 11,
2012. REUTERS/Fred Prouser/File Photo
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Herzer and Holland persuaded Redstone to sell those assets, which
generated about $100 million in after-tax income, the lawsuit said.
Redstone then gave $45 million each to Herzer and Holland.
However, this triggered matching tax obligations of more than $90
million, the lawsuit said. Redstone then had to borrow $100 million
from National Amusements to cover it, the lawsuit said, "because
Holland and Herzer had cleaned out Redstone's bank accounts."
The lawsuit also cites several emails from a Redstone nurse saying
that Herzer and Holland continually berated him and falsely said his
family did not want to visit.
Herzer's attorney, Richards, said Redstone is now being manipulated
by his family, and Herzer hopes his true mental state will emerge
during the course of the lawsuit.
(Reporting by Dan Levine; Additional reporting by Jessica Toonkel
and Lisa Richwine; Editing by Steve Orlofsky and Leslie Adler)
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