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Sumner Redstone’s granddaughter countersues; Viacom settlement talks held

Sumner Redstone's granddaughter, Keryn Redstone, maintains that her aunt, Shari Redstone, right, is manipulating her grandfather, Sumner Redstone, pictured here in 2012.
(Frederick M. Brown/Getty Images)
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Sumner Redstone’s granddaughter, Keryn Redstone, has upped the ante in the family drama, alleging in new court papers that her aunt, Shari Redstone, is the “puppet master” manipulating her ailing media tycoon grandfather.

Lawyers for Keryn Redstone, 34, who lives in Los Angeles, filed a cross-claim in Massachusetts probate court on Tuesday that supports Viacom Chief Executive Philippe Dauman’s allegations that years of careful estate planning by Sumner Redstone were upended by his daughter, Shari Redstone, as the mogul’s health deteriorated.

The changes put Shari Redstone and her allies firmly in control of the Redstone family investment vehicle, National Amusements Inc., as well as the Sumner Redstone trust that will one day oversee the family’s controlling shares of Viacom Inc. and CBS Corp.

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Lawyers representing the Redstones and Viacom were engaged in settlement talks in an effort to end legal wrangling playing out in three states. But talks broke down last week following court rulings, said two people familiar with the situation.

As part of the proposal being discussed, Dauman would resign as chief executive of Viacom and be replaced on an interim basis by his longtime lieutenant, Thomas Dooley, who currently serves as Viacom’s chief operating officer. While both Dauman and Dooley are Viacom board members, Dooley has not been targeted in National Amusements’ campaign to shake up Viacom’s board.

The Wall Street Journal first reported the settlement talks.

Court rulings last week in Delaware and Massachusetts gave standing to Viacom officials who are fighting to remain pivotal players in Redstone’s media empire that includes CBS, Showtime, Nickelodeon, Comedy Central, BET, MTV and the Paramount Pictures movie studio.

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Meanwhile, Sumner Redstone’s granddaughter, Keryn Redstone, remains on the opposite side of the dispute from other members of her famously fractious family.

She has long had a contentious relationship with her aunt, Shari Redstone, who serves as vice chair of Viacom and CBS. Keryn Redstone contends that Shari Redstone masterminded the plot to evict Redstone’s former companion, Manuela Herzer, from his Beverly Park mansion last fall, and subsequently had Keryn Redstone cut out of Sumner Redstone’s personal estate plan.

In the court documents, Keryn Redstone said she was to receive $6 million upon her grandfather’s death — but his will was revised in recent months, and the planned gift was eliminated.

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Keryn Redstone remains one of the beneficiaries of the lucrative Sumner M. Redstone NAI Trust that will hold the family’s shares in CBS and Viacom.

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The granddaughter contends that when Sumner Redstone’s once razor-sharp mind dulled, Shari Redstone made her move. Sumner and Shari Redstone clashed over the years — but they made amends late last year after the mogul jettisoned Herzer and another female companion from his life as his health deteriorated.

“When father was no longer mentally capable of warding off her newfound protestations of filial love, daughter made her move with lightning speed and ruthless efficiency,” wrote Keryn Redstone’s attorney, Sara Jane Shanahan.

Keryn Redstone maintains she has been blocked from visiting her grandfather, whom she calls “Grumpy.” She also asked to be reinstated as one of seven members of the Redstone trust.

The suit said Keryn Redstone was designated as a trustee until 2012 when she was replaced following a disagreement with her aunt over the care of another elderly family member.

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The filing comes after judges in two states last week made rulings that kept alive Dauman’s hopes that he might remain in power.

Dauman is challenging a move made by Redstone on May 20 that removed him as a trustee of the Redstone trust. In June, National Amusements took action to try to eject Dauman from the Viacom board. Both sides agreed to keep Viacom’s current board in place while the courts try to untangle the corporate and family drama.

Spokespeople for Shari Redstone and National Amusements declined to comment Tuesday. A Viacom spokesman also declined comment.

meg.james@latimes.com

@MegJamesLAT

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