In September 2018, following allegations of sexual assault against him, it was reported that CBS was negotiating a $100-million exit package for Moonves and that CBS Chief Operating Officer Joe Ianniello would serve as his interim replacement. On September 9, 2018, CBS Corporation announced he had resigned and Joe Iannello would become interim CEO. Moonves and CBS will donate $20 million to the #MeToo movement, money that will be deducted from any severance benefits Moonves may be owed, the company said. The donation to charities promoting women's equality in the workplace will come upon the conclusion of an independent investigation into the allegations, according to the statement.
In July 2018, The New Yorker published an article by Ronan Farrow saying that six women accused Moonves of harassment and intimidation, and dozens have described abuse at CBS. Moonves was subsequently placed under investigation by the CBS board.
In August 2018, Bucknell University removed references to Moonves on its website, and University of Southern California suspended Moonves' name from its Media Center.
In September 2018, The New Yorker reported that six more women (in addition to the six original women reported in July) had raised accusations against Moonves, going back to the 1980s. Shortly after resigning as CEO of CBS, Moonves released a statement denying all of the sexual misconduct allegations.
In November 2018, The New York Times published an article in which actress Bobbie Phillips alleges that Moonves sexually assaulted her during the mid-1990s, and was attempting to bury the allegations. The next month, it was revealed Moonves had been involved in paying a $9.5 million settlement to actress Eliza Dushku, who claimed she was written out of her starring role on CBS drama Bull as retaliation for reporting sexual harassment by co-star Michael Weatherly; actress Cybill Shepherd alleged in a radio interview that Moonves cancelled her sitcom, Cybill, after she rejected his advances.
On December 18, 2018, CBS announced that the board would deny Moonves his $120 million severance pay, as their investigation had found Moonves violated his contract. According to investigators, claims made by the women were credible, and led to more claims that were found to be credible during the course of the investigation. In addition, it was claimed that Moonves attempted to interfere with the investigation. Allegations of examples include Moonves refusing to cooperate with investigators, acting "evasive and untruthful" towards investigators, deleting hundreds of messages, and passing off his son's iPad as his own to investigators.
In August 2018, Moonves was "suspended" from the USC School of Cinematic Arts' board of councilors in the wake of sex abuse allegations.
In September 2018, at the same time Moonves resigned, CBS announced that Moonves and the network would be donating $20 million to #MeToo-related organizations.