Sumner Redstone: The Viacom Mogul's $150 Million War with Ex-Companions Over Elder Abuse and Mental Competency
Two ex-girlfriends received $150 million in gifts from a 92-year-old billionaire -- then he sued to get it all back
Key Facts
What Happened
Sumner Redstone was not a traditional divorce case, but it may be the most important relationship-dissolution story in modern corporate law. The Viacom and CBS chairman, whose media empire was worth $40 billion, became the center of a legal and corporate crisis when questions about his mental competency collided with revelations about his personal life. At the heart of the battle were two ex-companions -- Manuela Herzer and Sydney Holland -- who had collectively received approximately $150 million in gifts between 2010 and 2015.
The gifts were staggering in scope: matching $45 million checks to Herzer and Holland written on a single day in 2014; $18 million to a CBS corporate jet flight attendant; $21 million to a woman described in filings as 'an aspiring reality show producer'; and $6 million to the flight attendant's sister. The gifts were so large that they pushed the 92-year-old Redstone into debt, requiring him to borrow money to cover the tax obligations. His daughter Shari Redstone eventually intervened.
In October 2015, Redstone signed a new health care directive removing Herzer as his agent and replacing her with his daughter Shari. Herzer sued, claiming Redstone lacked the mental capacity to make this decision. The competency trial became a national spectacle, with Redstone's declining health on full display. In a dramatic video deposition, the nearly speechless Redstone managed to clearly say, using profanity, that he wanted Herzer out of his life. The judge dismissed Herzer's challenge.
Redstone's family then filed a $150 million countersuit against Herzer and Holland for elder abuse, alleging they had manipulated a mentally declining billionaire. In January 2019, Herzer settled, agreeing to return $3.25 million. Redstone died in August 2020 at age 97. The case became a landmark in elder abuse law and a cautionary tale about the intersection of wealth, aging, declining capacity, and romantic relationships. It forced courts and families to confront uncomfortable questions about when a wealthy elderly person's romantic generosity becomes exploitation.
Legal Breakdown: Financial Abuse
Elder Abuse in Wealthy Relationships
The Redstone case illustrates a growing area of law: financial exploitation of wealthy elderly individuals by romantic partners. When gifts from an aging person to a companion become disproportionate to the relationship -- $150 million over five years, pushing the giver into debt -- courts may find undue influence or exploitation. The challenge is distinguishing between genuine generosity and manipulation of a person with declining cognitive abilities.
Mental Competency and Legal Decision-Making
Herzer's challenge to Redstone's competency raised the question: at what point does cognitive decline invalidate a person's legal decisions? Courts apply different standards depending on the decision -- making a will requires different capacity than managing a business. Redstone's ability to clearly express his wishes in the deposition, despite his physical deterioration, was enough to satisfy the court. Physical frailty does not equal mental incompetence.
Corporate Governance Implications
Redstone's personal life had direct corporate consequences: his competency was relevant not just to his health care decisions but to his control of Viacom and CBS. The case accelerated discussions about succession planning, board independence, and the risks of having an aging controlling shareholder whose personal affairs threaten corporate stability. Families with controlling stakes in public companies must plan for cognitive decline as a governance issue, not just a personal one.
What This Means for Your Divorce
- →Disproportionate gift-giving by an elderly person to a romantic companion is a red flag for financial exploitation. Families should monitor and intervene early.
- →Mental competency is decision-specific. A person can be competent to express personal preferences while being incompetent to manage complex financial affairs.
- →Establish durable powers of attorney and health care directives while cognitive capacity is unquestioned -- waiting until a crisis invites legal challenges.
- →For families with controlling stakes in public companies, succession planning must include provisions for cognitive decline of the controlling shareholder.
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This article is based on publicly available court records, news reports, and legal analysis. It is provided for educational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content.
Divorce laws vary by jurisdiction. Always consult a licensed attorney in your area before making legal decisions.