Viacom Investors May Be Eligible for Share of $120M Securities Class Action Settlement

Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and Wells Fargo Securities, LLC have agreed to pay $120 million to settle a securities class action lawsuit involving ViacomCBS Inc. (now Paramount Global).

The lawsuit alleges that the underwriters issued misleading offering documents tied to Viacom’s March 2021 securities offerings, omitting key disclosures related to Archegos Capital Management’s involvement and the underwriters’ own trading activities.

Who Is Eligible?

You may qualify for compensation if you:

• Purchased or acquired ViacomCBS Class B Common Stock in the March 2021 secondary public offering (announced March 22, priced March 23, closed March 26), either:
  • Directly at the offering price of $85, or
  • On the open market between March 24–29, 2021, with shares traceable to the offering
• Purchased or acquired Viacom 5.75% Series A Mandatory Convertible Preferred Stock in or traceable to the initial public offering during the same period:
  • Directly at $100 per share, or
  • On the open market through March 29, 2021
• Experienced financial loss as a result of these purchases

How Much Could You Receive?

The $120 million settlement is divided between two funds:

1. Common Stock Claim Fund – $75 million

• If sold before March 4, 2025: Loss = purchase price (up to $85) minus sale price
• If still held as of March 4, 2025: Loss = purchase price (up to $85) minus $11.48 (closing price on that date)

2. Preferred Stock Claim Fund – $45 million

• If sold before March 28, 2024: Loss = purchase price (up to $100) minus sale price
• If still held as of March 28, 2024: Loss = purchase price (up to $100) minus $13.74 (closing price on that date)

Final payment amounts depend on the number of valid claims and approved deductions for legal and administrative expenses.

How to File a Claim

To receive compensation, class members must submit a claim form by August 22, 2025. You may file online or by mailing the completed form to:

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

Documentation Required

Claimants must submit proof of purchase, such as:

• Trade confirmation slips
• Monthly or year-end account statements
• Broker-issued transaction history showing purchase and sale of Viacom securities

Payment Method

Approved claimants will receive their payment via check, mailed to the address provided in their claim form.

Settlement Fund Breakdown ($120 Million)

• Administration costs: Up to $500,000
• Attorneys’ fees: Up to $40 million
• Legal expenses: Up to $2.3 million
• Net payments to class members: Remainder of the fund

Key Deadlines

• Exclusion (opt-out) deadline: July 15, 2025
• Final approval (fairness) hearing: August 5, 2025
• Claim submission deadline: August 22, 2025

When Will Payments Be Issued?

Payments to eligible class members will be sent after the settlement receives final court approval and any appeals are resolved. The final hearing is currently scheduled for August 5, 2025.

Why Is There a Settlement?

The lawsuit alleged that offering documents for Viacom’s March 2021 stock sales included false or misleading statements and failed to disclose material information—specifically that certain underwriters, including Morgan Stanley and Goldman Sachs, were holding large blocks of Viacom stock and intended to sell outside the offerings in connection with Archegos Capital Management’s positions.

The defendants deny all allegations but agreed to the settlement to avoid further litigation.

Sources:

• Class Notice
• Settlement Website FAQs
• Settlement Agreement

Claim Window Open
Estimated Payout: $10+ (pro rata share based on claim volume)
Claim Deadline: August 22, 2025

Please be aware that your claim form will be rejected if it contains fraudulent information. By submitting your information and your sworn statement of its accuracy, you are agreeing to do so under penalty of perjury. Submitting false information not only jeopardizes your claim but also affects others who are genuinely eligible for the settlement. If you are uncertain about your eligibility for this class action settlement, please visit the class action administrator’s website for more information. Note that NoProofClassActions.org participates in the Amazon affiliate advertising program, and this post may include affiliate links, which could result in us earning a commission if you make a purchase through those links.