Viacom Investor Suit Over CBS Merger Can Proceed, Judge Says (1)

Viacom Inc. shareholders claiming they were shortchanged in the company’s $11.7 billion merger with CBS Corp. can proceed with a lawsuit to recoup their losses, a Delaware judge ruled Tuesday.

Vice Chancellor Joseph R. Slights III of Delaware Chancery Court said the investors’ complaint makes out a case against media mogul Shari Redstone, daughter of the late Sumner Redstone, as well as members of the Viacom board, National Amusements Inc. and NAI Entertainment Holdings LLC. Slights didn’t rule on the merits as he allowed the suit to go forward.

“Ms. Redstone is alleged to have exerted her control ...