Sumner Redstone’s Nephew Sues Over Management of Family Trusts

Sumner Redstone's Nephew Sues Over Management of Family Trusts 1Viacom Inc. Chairman Sumner Redstone, already facing a lawsuit from his son, now faces a suit from his nephew who claims he and other family heirs were bilked out of an approximately $4 billion stake in the Redstone family’s business empire.

The suit, coming nine months after Mr. Redstone’s son Brent filed suit against his father seeking to gain direct control of the son’s personal stake in the empire, is likely to add to questions about the strength of Sumner Redstone’s hold on Viacom and CBS Corp., both of which are controlled by the Redstone family.

In a lawsuit filed in a Massachusetts court this month, Michael Redstone alleges his father Edward Redstone and his uncle Sumner Redstone engaged in “self-dealing,” “breaches of fiduciary duty” and “unjust enrichment as trustees of certain Redstone family trusts” when they bought his stake and that of other heirs in the family company, National Amusements Inc., in a series of transactions in 1972 and 1984.