Viacom Inc.

A class action lawsuit has been filed against the company and its founder, Sumner Redstone, for allegedly lying about the financial state of Blockbuster Inc. when it was spun off in a 2004 stock swap deal. Viacom was Blockbuster's largest shareholder and reaped $738 million of a $905 million dividend paid in connection with the deal. In order to seal the deal, Blockbuster had to go $900 million in debt; Redstone allegedly knew about the debt, but other shareholders did not. The lawsuit seeks damages for all who agreed to swap their Viacom shares for stock in Blockbuster.