Law Offices of Howard G. Smith Announces Investigation On Behalf of Shareholders of CBS Corporation
BENSALEM, Pa.-(Business Wire)-September 29, 2009 - Law Offices of Howard G. Smith announces that it is investigating potential claims against CBS Corporation ("CBS" or the "Company") (NYSE:CBS) concerning possible securities violations arising from public statements made by the Company between February 26, 2008 and October 10, 2008. The investigation pertains to allegations that statements issued by the Company failed to disclose or indicate that adverse market conditions had materially impaired the Company’s operations, expected cash flows, and the value of its intangible assets, including goodwill.
According to a shareholder lawsuit filed December 12, 2008, in the United States District Court for the Southern District of New York against CBS and certain of its executive officers and directors, the defendants knew or recklessly disregarded, among other things, that during foregoing period: (a) the Company’s reported goodwill and intangible assets – which ranged between 69% and 73% of CBS’s total assets, and 131% and 137% of CBS’s total equity – were materially overstated; (b) the Company reported equity capital that was materially overstated; (c) as a result of its failure to timely write-down impaired intangible and goodwill assets, the Company’s financial results were materially overstated; (d) the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles and, therefore, were materially false and misleading; (e) the impairment charges were understated, and goodwill, intangible assets, total assets, stockholders equity, net income and deferred income and taxes were overstated; (f) the Company failed to develop and implement adequate internal accounting controls sufficient to insure that the Company’s financial results were accurately reported; and (g), the Company’s balance sheet was not “pristine” or “extremely healthy,” as represented.
On October 10, 2008, CBS issued a press release announcing that the Company “expects to incur a non-cash impairment charge of approximately $14 billion, in the third quarter of 2008.” As result of this news, the price of CBS stock fell $2.04 per share, or approximately 20% from the previous day’s closing price, to close at $8.10 per share, on extremely heavy trading volume of more than 49 million shares traded.
If you own shares of CBS stock, and would like to learn more about these claims or have information about these claims, or if you have any questions concerning this Notice, wish to discuss these matters, or have any questions with regard to your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com.
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