$37M Viacom Investor Suit Likely To Flop Despite Novel Tactic

Law360, New York (August 21, 2012, 6:32 PM EDT) -- Viacom Inc. shareholders got creative on Friday, suing the company for $37 million in damages under a federal law barring tax deductions for unwarranted executive pay, but experts said the gambit wasn't likely to see a better outcome than more traditional bonus suits.

Plaintiff Robert Freedman slapped Viacom and its top brass with a derivative suit in Delaware federal court, alleging the company violated a provision of the federal tax code that places a $1 million limit on the amount a publicly held corporation can deduct...
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