Settlement talks stall in Sumner Redstone competency case
(Adds details on tentative settlement)
By Jessica Toonkel
NEW YORK, April 12 (Reuters) - Talks aimed at settling a lawsuit questioning the competency of media mogul Sumner Redstone have hit an impasse and attorneys are rescheduling the depositions of key players, an attorney for Redstone's former girlfriend, who brought the lawsuit, said on Tuesday.
A trial could add further embarrassment for the ailing Redstone and his family, and act as continued distraction for media company Viacom Inc, which is majority-owned by the 92-year-old multi-billionaire.
Lawyers representing Redstone and his ex-girlfriend Manuela Herzer, who filed the lawsuit in November last year, reached a preliminary settlement on Thursday that was expected to go before a judge this week.
Under the tentative agreement, Herzer was due to receive about $30 million, which included a donation to her charitable foundation, plus an apartment she used at the Carlyle Hotel in New York, according to a source familiar with the matter.
The impasse has nothing to do with money, Herzer's attorney Pierce O'Donnell told Reuters. "We remain hopeful that the problems can be overcome and an agreement executed by the parties," he said.
In the meantime, attorneys are rescheduling the depositions of Sumner's daughter Shari Redstone, and Viacom CEO Philippe Dauman for next week and the following week, according to O'Donnell.
The depositions had originally been scheduled for last week but were canceled once the parties entered settlement talks.
In her lawsuit, Herzer is challenging her removal last year as Redstone's health care agent in favor of Viacom CEO Dauman, saying Redstone was not mentally competent to make that decision.
She declared in the suit that Redstone was a "living ghost." Redstone's attorneys argued he was fully aware of his actions. Herzer had been set to inherit $70 million before Redstone changed his estate plan in October, according to court documents.
Representatives for Sumner Redstone declined to comment on the case that is scheduled to go to trial in Los Angeles on May 6.
Redstone is also majority owner of TV network and media company CBS Corp.
(Reporting by Jessica Toonkel in New York and Lisa Richwine in Los Angeles; Writing by Anna Driver; Editing by Bill Rigby and Andrew Hay)
