Pontiac (Mich.) General Employees Retirement System filed a shareholder lawsuit against CBS Corp. and its executives, claiming they made materially false and misleading statements about the companys financial condition before announcing a $14 billion charge in October.
The lawsuit, filed Friday in U.S. District Court in New York, is seeking class-action status. The suit alleges that New York-based CBS failed to disclose that adverse market conditions had impaired the value of its intangible assets, including goodwill.
The company announced Oct. 10 that it would take the $14 billion non-cash impairment charge to reduce the carrying value of goodwill, intangible assets related to FCC licenses and investments. CBS common stock fell from $10.14 to $8.10 the day after the announcement; in late-afternoon trading Monday, the stock was at $7.50.
Further information was not available. Ellen Zimmermann, system administrator for the $500 million pension fund, and a representative at the funds attorney, Coughlin Stoia Geller Rudman & Robbins, did not return calls by press time. A CBS media representative also did not return a call by press time.