CBS shares tank on CEO Moonves misconduct allegations report

CBS shares are tumbling on reports that CEO Les Moonves may soon be accused of misconduct. The company’s board said it will conduct a full investigation , as reported by Dow Jones.

Shares of CBS were down more than 6% in Friday afternoon trading. Investors consider Moonves a marquee operator in the media world and he has steered CBS to much success over the past 12-years at the helm. The television network has been among the most-watched for 15 of the last 16 years, according to the company.

The allegations are reportedly laid out in an upcoming article in The New Yorker penned by Ronan Farrow, who also broke the Harvey Weinstein sex scandal story.

The news also comes as Moonves battles Shari Redstone, who along with her father Sumner, controls the majority of CBS and Viacom stock through the family’s National Amusements holding company. Shari Redstone has pushed to combine the two media giants, a deal Moonves vigorously opposed in the courts. The two are now battling for control of the company.

CBS shares have lost 2% this year, while Viacom has fallen 5%.

In recent weeks, two other high profile CEOs have resigned amid allegations of improper conduct. Earlier this month, Texas Instruments announced the resignation of Brian Crutcher, its president and CEO, for unspecified violations of the company’s code of conduct. In June, Intel CEO Brian Krzanich resigned from the company and the board amid revelations that he had a relationship with a former employee.