Paramount Shareholder Sues Ellisons, Board, Company Responds

Key Points:

• Paramount disputes a shareholder lawsuit alleging improper dealings with the Trump administration, stating the claims have been previously reported and addressed, and denying any commitments regarding CNN or other news properties beyond delivering truth-based journalism.
• The company emphasized that the Skydance-Paramount transaction complied fully with all laws during regulatory reviews and that the Warner Bros. Discovery merger offers consumers more choices, stronger competition, and enhanced journalism, expressing confidence in the deal’s fundamentals.
• The lawsuit, filed by shareholder Paul Robbins, accuses CEO David Ellison, Larry Ellison, and Paramount’s board of breaching fiduciary duties by allegedly trading editorial independence for regulatory approval, including promises of favorable coverage and illegal benefits to President Trump.
• Supported by the Freedom of the Press Foundation and Public Integrity Project, the suit claims the Ellisons orchestrated an illegal bribery scheme involving advertising promises and litigation settlements to secure merger approval, damaging Paramount’s reputation and risking future liabilities.
• This legal action is part of broader resistance to the $110-billion merger, which also faces lawsuits from state Attorneys General, the Writers Guild of America, and Paramount+ subscribers, all challenging the deal on antitrust and other grounds.