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 12:36 PM
Updated: Jul 28, 2018 12:36 PM

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

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 36096

Reported Deaths: 2231
CountyConfirmedDeaths
Marion10095598
Lake3833203
Allen175371
Cass15927
Elkhart149528
St. Joseph133736
Hendricks119276
Hamilton118394
Johnson1121112
Madison59961
Porter55830
Clark53041
Bartholomew52739
LaPorte44624
Howard44036
Tippecanoe4294
Jackson3992
Shelby39722
Delaware38940
Hancock35127
Boone32435
Floyd32340
Vanderburgh2892
Morgan28426
Noble26821
Montgomery24818
Clinton2461
White2389
Decatur23131
Grant22523
Dubois2093
Harrison19522
Henry18412
Kosciusko1792
Vigo1788
Marshall1782
Greene17225
Dearborn17022
Monroe17012
Lawrence16724
Warrick16729
Miami1441
Putnam1427
Jennings1324
Orange13122
Scott1263
Franklin1168
LaGrange1162
Ripley1086
Daviess9916
Carroll943
Steuben882
Wayne866
Wabash802
Fayette797
Newton7810
Jasper731
Jay540
Clay533
Randolph523
Rush513
Washington501
Fulton501
Pulaski500
Jefferson491
Whitley453
DeKalb441
Starke393
Perry390
Huntington382
Sullivan371
Owen341
Wells340
Brown331
Benton320
Knox310
Blackford272
Tipton261
Crawford240
Fountain222
Switzerland210
Spencer211
Adams211
Gibson192
Parke180
Posey160
Martin130
Ohio130
Warren121
Vermillion100
Union90
Pike60
Unassigned0179

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 124759

Reported Deaths: 5736
CountyConfirmedDeaths
Cook807133846
Lake8584330
DuPage7939392
Kane6581197
Will5742284
Winnebago239761
McHenry166078
St. Clair122791
Kankakee97553
Kendall83319
Rock Island69424
Champaign6717
Madison61265
Boone48817
DeKalb4438
Sangamon35929
Jackson29610
Peoria28611
Randolph2734
McLean22413
Ogle2233
Stephenson2095
Macon19920
Clinton18917
Union17114
LaSalle15916
Whiteside14713
Iroquois1334
Coles12917
Warren1200
Out of IL1191
Grundy1072
Knox1020
Jefferson10116
Monroe9812
McDonough9313
Unassigned840
Lee821
Tazewell785
Cass740
Williamson743
Henry700
Pulaski570
Marion510
Jasper467
Macoupin462
Adams441
Morgan421
Perry420
Montgomery411
Vermilion411
Livingston362
Christian354
Jo Daviess321
Douglas280
Jersey241
Fayette213
Woodford212
Ford201
Menard200
Washington190
Mason180
Mercer180
Bureau171
Hancock171
Shelby161
Carroll152
Schuyler130
Alexander120
Bond121
Franklin120
Fulton120
Moultrie120
Clark110
Crawford110
Johnson110
Logan110
Piatt110
Brown100
Cumberland100
Wayne91
Henderson80
Effingham71
Massac70
Saline70
Greene60
Wabash60
Marshall50
De Witt40
Lawrence40
Richland40
Stark30
Clay20
Edwards20
Gallatin20
Hamilton20
White20
Calhoun10
Edgar10
Hardin10
Pike10
Pope10
Putnam10
Terre Haute
Clear
85° wxIcon
Hi: 90° Lo: 70°
Feels Like: 88°
Robinson
Clear
84° wxIcon
Hi: 87° Lo: 68°
Feels Like: 88°
Indianapolis
Broken Clouds
85° wxIcon
Hi: 88° Lo: 70°
Feels Like: 87°
Rockville
Clear
80° wxIcon
Hi: 88° Lo: 69°
Feels Like: 82°
Casey
Few Clouds
83° wxIcon
Hi: 88° Lo: 70°
Feels Like: 87°
Brazil
Clear
85° wxIcon
Hi: 88° Lo: 69°
Feels Like: 88°
Marshall
Clear
85° wxIcon
Hi: 88° Lo: 70°
Feels Like: 88°
Sunny and Hot
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events