Viacom $120 Million Securities Class Action Settlement

If you purchased or otherwise acquired ViacomCBS Inc. (“Viacom”) Class B Common Stock in the March 2021 secondary public offering, or Viacom 5.75% Series A Mandatory Convertible Preferred Stock in or traceable to the March 2021 initial public offering, you may be eligible to claim a share of a $120 million class action settlement.

Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and Wells Fargo Securities, LLC have agreed to pay $120,000,000 to resolve a class action lawsuit alleging violations of federal securities laws. The lawsuit claims that these underwriters disseminated offering materials for Viacom’s March 2021 offerings that contained false and misleading statements and omitted required disclosures, particularly about certain underwriters’ holdings and intentions to sell Viacom securities outside the offerings in connection with Archegos Capital Management.

Who is eligible for a settlement payment?

Class members must meet the following criteria:

• You purchased or otherwise acquired ViacomCBS Inc. Class B Common Stock issued in Viacom’s secondary public offering, which was announced on March 22, 2021, priced on March 23, 2021, and closed on March 26, 2021.
• Shares purchased directly in the offering at $85 per share, or shares bought in the open market from March 24, 2021 through March 29, 2021 that are traceable to the offering, qualify.

• You purchased or otherwise acquired Viacom’s 5.75% Series A Mandatory Convertible Preferred Stock issued in or traceable to Viacom’s initial public offering, which was announced on March 22, 2021, priced on March 23, 2021, and closed on March 26, 2021.
• Shares purchased directly in the offering at $100 per share or in the open market through March 29, 2021 are included in the settlement.

• You experienced financial damaged as a result of these purchases.

How much is the class action lawsuit payout?

The Plan of Allocation divides settlement payments into into two categories:

• Common Stock Claim Fund: $75 million (minus deductions for fees, expenses, and costs)
• Shares purchased directly in the offering not exceeding $85 each and sold before March 4, 2025, the Recognized Loss is the purchase price minus the sale price.
• Shares held as of March 4, 2025, the Recognized Loss is the purchase price (not exceeding $85) minus $11.48 which was the closing price on March 4, 2025.

• Preferred Stock Claim Fund: $45 million (less deductions from the settlement fund for fees, expenses, and costs)
• Shares purchased directly in the offering at $100 per share or in the open market through March 29, 2021 and sold before March 28, 2024, the Recognized Loss is the purchase price (not more than $100) minus the sale price.
• Shares held as of March 28, 2024, the Recognized Loss is the purchase price (not exceeding $100) minus $13.74, which was the closing price on March 28, 2024.

How to claim a Viacom settlement payment

To receive a class action rebate, class members must complete and submit a claim form by the August 22, 2025 deadline. You can file a claim online or print a PDF claim form to mail to the settlement administrator.

Settlement Administrator Address: Viacom Archegos Securities Litigation, c/o JND Legal Administration, P.O. Box 91010, Seattle WA 98111

Is proof required?

Yes, claimants must provide supporting documentation such as brokerage confirmation slips, monthly account statements, or a broker statement detailing transactional and holding information.

Payout options

Approved claimants will receive a check mailed to the address provided on the settlement claim form.

$120 Million class action settlement fund

The $120,000,000 settlement includes the following payments:

• Settlement administration costs: Up to $500,000
• Attorneys' fees: Up to up to $40,000,000
• Attorneys' expenses: Up to $2,300,000
• Payments to class members with valid claims: Remaining settlement funds

Important dates

• Exclusion Deadline: July 15, 2025
• Fairness Hearing: August 5, 2025
• Claim Form Deadline: August 22, 2025

When is the Viacom securities settlement payout date?

The court has scheduled the final fairness hearing to take place on August 5, 2025. Payments to valid claimants will be issued after the judge grants final approval to the settlement and any appeals are resolved.

Why did this class action settlement happen?

This class action lawsuit claimed that the defendants violated the Securities Act of 1933 by issuing offering materials for the March 2021 Viacom offerings that contained false and misleading statements and omitted required disclosures. The alleged omissions related to certain underwriters’ holdings and intentions to sell Viacom securities outside the offerings, particularly in relation to Archegos Capital Management.

All involved parties agreed to settle to avoid the costs and risks of continued litigation. Defendants deny any wrongdoing.

Sources

1. Class Notice
2. Settlement Website FAQ Page
3. Official Settlement Website