DALLAS, Sept. 24, 2009 (GLOBE NEWSWIRE) -- Kendall Law Group, led by a former federal judge and former U.S. Attorney, announces a shareholder investigation against CBS Corporation (NYSE:CBS) and certain of its officers and directors, regarding statements made by the company from February 26, 2008 to October 10, 2008.
The firm is seeking CBS shareholders who wish to enforce strict corporate governance and internal controls on the company because of the allegations revealed in a class action. Shareholders must have purchased CBS shares before or during the above time period. A class action was filed against the Company and certain executives in the Southern District of New York on December 12, 2008. The class action complaint alleges that Defendants failed to disclose that adverse market conditions had materially impaired their operations, expected cash flows and the value of its intangible assets, including goodwill. The Company overstated goodwill and intangible assets, which ranged between 69% and 73% of their total assets and 131%-137% of equity capital during the indicated period. As a result of CBS' failure to timely write down impaired intangible and goodwill assets, their financial results were overstated as well as their reported equity capital. The complaint also alleges that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles and were therefore materially false and misleading and that their balance sheet was not pristine. Their cash flow from operations was declining at a significant rate giving no reasonable basis for their positive statements.
CBS issued a press release on October 10, 2008 announcing that it "expects to incur a non-cash impairment charge of approximately $14 billion, in the third quarter of 2008." In response to this announcement, the price of CBS common stock dropped from $10.14 to $8.10 on very heavy trading volume.
Kendall Law Group has nationwide experience representing investors in securities litigation. For information about your rights as a CBS shareholder, contact attorney Hamilton Lindley at 877-744-3728 or by email at hlindley@kendalllawgroup.com.
The Kendall Law Group, LLP logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6273