SOURCE: Stull, Stull & Brody

December 15, 2008 19:28 ET

Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of CBS Corporation

NEW YORK, NY--(Marketwire - December 15, 2008) - Attorney Advertising. Notice is hereby given that a class action has been commenced in the Southern District of New York on behalf of purchasers of CBS Corporation ("CBS" or the "Company") (NYSE: CBS) common stock during the period between February 26, 2008 and October 10, 2008 (the "Class Period").

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought CBS stock through your CBS retirement account and have information or would like to learn more about these claims, please contact us.

The complaint charges CBS and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CBS operates as a mass media company in the United States and internationally. It operates in four segments: Television, Radio, Outdoor, and Publishing.

The complaint alleges that, during the Class Period, defendants made materially false and misleading statements about the Company's financial condition and operating results. Specifically, Defendants failed to disclose: (i) that adverse market conditions had materially impaired CBS's operations, expected cash flows and the value of its intangible assets, including goodwill; (ii) that the Company's reported goodwill and intangible assets, which ranged between 69% - 73% of CBS's total assets and 131% - 137% of CBS's total equity during the Class Period, were materially overstated; (iii) that the Company reported equity capital during the Class Period that was materially overstated; (iv) that, as a result of its failure to timely write-down impaired intangible and goodwill assets, the Company's financial results during the Class Period were materially overstated; (v) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and, therefore, were materially false and misleading; (vi) that the Company's balance sheet was not "pristine," "extremely strong" or "extremely healthy;" (vii) that the Company's cash flow from operations was declining at a significant rate; and (x) that Defendants' positive statements concerning the Company's free cash flow, including Defendant Moonves's representation that CBS "clearly has the right broad range of assets to produce outstanding free cash flow quarter after quarter, year after year," were materially false and misleading and without reasonable basis.

According to the complaint, on October 10, 2008, CBS issued a press release announcing that it "expects to incur a non-cash impairment charge of approximately $14 Billion, in the third quarter of 2008." In response to this announcement, the price of CBS common stock declined from $10.14 to $8.10, on very heavy trading volume.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired CBS common stock during the Class Period, which is between February 26, 2008 and October 10, 2008. If you purchased or otherwise acquired CBS common stock during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased CBS common stock during the Class Period, you may request that the Court appoint you as lead plaintiff no later than February 10, 2009.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 40 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Contact Information

  • Contact:
    Tzivia Brody, Esq.
    Stull, Stull & Brody
    SSBNY@aol.com
    1-800-337-4983
    fax: 212/490-2022
    6 East 45th Street
    New York, NY 10017
    www.ssbny.com