Sumner Redstone's settlement talks on competency case on deadlock

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A deadlock has been reached regarding the settlement case of media mogul Sumner Redstone and his ex-girlfriend. The case questions the capability of Redstone to run his own company.

The case that was filed last November was represented by attorneys from Redstone's camp and his ex-girlfriend, Manuela Herzer. Both parties reached a preliminary settlement on the issue. Experts said that a case can add to the increasing embarrassment that the Redstone family is experiencing at the moment. The 92-year-old multi-billionaire is the part owner of Viacom Inc.

The temporary agreement states that Herzer will receive $30 million compensation including a donation money to her charitable institution. She will also acquire the apartment that she is using at the Carlyle Hotel in New York as per Reuters.

As reported by the Los Angeles Times, Pierce O'Donnell, Herzer's attorney, said they remain hopeful that they will be able to resolve their differences. He added that a settlement is in everyone's best interest but they look forward if a trial will be presented.

According to Bloomberg, the recent dispute has exposed the differences between the Redstones which include his daughter Shari and longtime confidant, Philippe Dauman. This case will somehow affect the mogul's control over Viacom and CBS Corp. On the other hand, the statements of Shari and Dauman to the court will be rescheduled for next week and the week after that.

On the details of her lawsuit, Herzer challenged her removal as Redstone's health care agent which was then replaced by Dauman. Herzer claimed that Redstone was not mentally capable of making such decision and also claimed that the media mogul is a living ghost.

She is already set to receive $70 million until Redstone changed his estate plan last October. An attorney for Redstone, however, claimed that his client is fully aware of his actions and decisions. The case is rescheduled on May 6.

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