Paramount Global UNIT VOLUME has agreed to pay $122.5 million in litigation alleging that the CBS-Viacom merger was unfair to shareholders.

The company announced that it has agreed to settle the class action lawsuit now pending in the Delaware Court of Chancery. reports the diversity.

According to the lawsuit, CBS stock was overpriced and Viacom undervalued during the merger process, causing damage to Viacom shareholders.

The lawsuit alleged that the chairman of Paramount Global, Shari Redstoneousted board members in a “tyrannical” attempt to merge the two companies, Variety reports.

The California Public Employees’ Retirement System (CalPERS), the lead plaintiff in the case, said in a statement that the case underscores problems with dual-class stock structures.

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“CalPERS believes this settlement, one of the largest class action settlements in Delaware history, validates our decision to take action against regulators’ abuses and to repair the damage sustained by Viacom’s independent shareholders,” the outlet said Matthew Jacobssays the General Counsel of CalPERS.

According to the report, Paramount Global is facing a separate class action lawsuit filed by CBS shareholders.

This lawsuit challenges the merger and claims so Joseph Lanniellothe former acting CEO of CBS, received a $125 million settlement to buy his support for the merger.

The CBS-Viacom merger created a new company by the name ViacomCBSled by Paramount CEO Bob Bakisch.

Last month, Paramount reported a net loss shares attributable to common shareholders of $37.9 million, or $0.17 per diluted share.

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