After the devastating and record-setting blow to social media giant Facebook Thursday, CBS shares are now beginning to slide as well and are currently down around 6%. The sharp decline in CBS shares follows a report that suggests the company's CEO Leslie Moonves is being accused of sexual misconduct in yet-to-be-released New Yorker article by Ronan Farrow.
The Hollywood Reporter shed some light on the New Yorker's story about unwanted sexual advances made by Moonves over 20 years ago. After The Hollywood Reporter published their own speculative article, CBS' independent directors issued a statement saying "all allegations of personal misconduct are to be taken seriously."
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The CBS statement reads:
<i>"All allegations of personal misconduct are to be taken seriously. The Independent Directors of CBS have committed to</i> <i>investigating claims that violate the Company's clear policies in that regard. Upon the conclusion of that investigation,</i>
<i>which involves recently reported allegations that go back several decades, the Board will promptly review the findings and</i> <i>take appropriate action."</i>
<i>"The timing of this report comes in the midst of the Company's very public legal dispute. While that litigation process</i> <i>continues, the CBS management team has the full support of the independent board members. Along with that team, we</i> <i>will continue to focus on creating value for our shareowners."</i>
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The accused Moonves has been working in numerous executive positions at CBS since he joined the television company in 1995.
He is also expected to be the target of a sexual misconduct lawsuit which is set to be revealed in the upcoming New Yorker story. Moonves became CEO of CBS Television in 1998 and then became chairman in 2003. He has been widely praised by the industry and investors for helping CBS navigate the transition into the internet age.
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