CBS stock falls on report of New Yorker article alleging misconduct by Les Moonves

The New Yorker is about to publish an investigation of CBS Corporation and its CEO Leslie Moonves. News of the impend...

Posted: Jul 28, 2018 11:36 AM
Updated: Jul 28, 2018 11:36 AM

The New Yorker is about to publish an investigation of CBS Corporation and its CEO Leslie Moonves. News of the impending investigation sent the company's stock down more than 6%.

Members of the CBS board of directors say they will take the allegations seriously.

But the magazine story hasn't actually come out yet.

Ronan Farrow, who has investigated President Trump, Harvey Weinstein, and other powerful men in the past year, has been pursuing a story about Moonves and CBS, according to people with knowledge of his work.

In TV circles, there have been rumors of an impending Farrow story about Moonves for the past six months.

Some people began to turn skeptical about the potential story because it had not materialized yet.

But the story is, in fact, set to be published on the web sometime Friday.

The New Yorker declined to comment, citing its policy of not commenting on reporting efforts before publication.

But The Hollywood Reporter foreshadowed the Farrow report in an item of its own Friday morning. According to The Hollywood Reporter, Farrow's piece is about CBS as a whole, including Moonves, who is said to be accused of sexual misconduct in the past.

CBS stock fell 4% as soon as the THR item came out. It closed down 6.1%, at $54.01 a share.

Moonves has been one of the most celebrated and well-respected executives in the television industry. A titan of broadcasting, he has guided CBS for the better part of twenty years.

Moonves is embroiled in a bruising legal battle with CBS vice chair Shari Redstone, whose holding company effectively controls CBS and its sister media company Viacom.

Related: CBS crisis comes to a head as Moonves and Redstone fight for network's future

The CBS board is split, with the independent members of the board backing Moonves in his quest for more autonomy from Redstone.

On Friday, in response to the expected Farrow report, the independent directors of the board said they would look into the charges made in the forthcoming article.

"All allegations of personal misconduct are to be taken seriously," the board members said in a statement. "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."

Moonves did not immediately respond to a request for comment.

In a statement issued Friday afternoon, a representative for Shari Redstone said, "The malicious insinuation that Ms. Redstone is somehow behind the allegations of inappropriate personal behavior by Mr. Moonves or today's reports is false and self-serving. Ms. Redstone hopes that the investigation of these allegations is thorough, open and transparent."

-- CNN's Dylan Byers and Jill Disis contributed reporting

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 296745

Reported Deaths: 6783
CountyCasesDeaths
DeSoto19731230
Hinds18881393
Harrison16780282
Rankin12787265
Jackson12643229
Lee9703161
Madison9484203
Jones8005147
Forrest7250138
Lauderdale6847227
Lowndes6033140
Lamar590980
Lafayette5747113
Washington5229130
Bolivar4620124
Oktibbeha442194
Panola432396
Pearl River4193132
Warren4138115
Pontotoc410771
Marshall404492
Monroe3993128
Union396474
Neshoba3822170
Lincoln3564104
Hancock350277
Leflore3389119
Sunflower319286
Tate303374
Pike301796
Scott295271
Alcorn292463
Yazoo290865
Itawamba290275
Coahoma282069
Tippah279565
Copiah279259
Simpson276680
Prentiss271158
Wayne254541
Leake253172
Marion252778
Covington249780
Grenada248578
Adams235078
George232445
Newton231252
Winston221979
Jasper213845
Tishomingo212965
Attala206870
Chickasaw201453
Holmes182770
Clay179251
Stone173029
Tallahatchie171439
Clarke169672
Calhoun158528
Smith153033
Yalobusha145536
Greene127933
Walthall124540
Noxubee123131
Montgomery122939
Perry122235
Lawrence120621
Carroll119025
Amite112235
Webster111132
Jefferson Davis102731
Tunica99523
Claiborne99129
Benton93924
Humphreys93027
Kemper90423
Quitman77414
Franklin76219
Choctaw69817
Jefferson62827
Wilkinson62427
Sharkey49117
Issaquena1676
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Alabama Coronavirus Cases

Cases: 498076

Reported Deaths: 10094
CountyCasesDeaths
Jefferson716711387
Mobile36294737
Madison32616468
Tuscaloosa24340421
Montgomery22739519
Shelby22174218
Baldwin19873289
Lee15039157
Calhoun13832293
Morgan13753254
Etowah13390325
Marshall11448211
Houston10124264
Elmore9483190
Limestone9420138
St. Clair9022227
Cullman8984182
Lauderdale8612214
DeKalb8489175
Talladega7606165
Walker6585259
Jackson6545104
Autauga632492
Blount6236127
Colbert6001121
Coffee5264103
Dale4671107
Russell406933
Franklin399878
Covington3993106
Chilton3898103
Escambia379173
Tallapoosa3622143
Clarke344053
Chambers3431111
Dallas3422142
Pike293373
Marion288695
Lawrence284985
Winston258368
Bibb246160
Geneva240370
Marengo238857
Pickens225457
Barbour213651
Hale212269
Fayette202057
Butler201466
Henry183541
Cherokee178039
Monroe166739
Randolph164840
Washington156836
Macon147745
Crenshaw146255
Clay145954
Cleburne139841
Lamar133733
Lowndes132751
Wilcox122925
Bullock117336
Conecuh107024
Perry106127
Sumter99732
Coosa90224
Greene88532
Choctaw55323
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