Judge Denies Preliminary Injunction in Paramount+ Subscribers' Challenge to Warner Bros. Discovery Merger
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Judge Denies Preliminary Injunction in Paramount+ Subscribers' Challenge to Warner Bros. Discovery Merger

Summary

A federal judge rejected a request by a small group of Paramount+ subscribers for an injunction against the Warner Bros. Discovery merger, while a coalition of state attorneys general prepares to seek a temporary restraining order.

A federal judge on Thursday denied a preliminary injunction sought by a handful of Paramount+ subscribers who argue that the Warner Bros. Discovery merger would raise prices and limit viewing options. Judge Araceli Martinez-Olguin said the plaintiffs had not provided any evidence to support their motion and expressed doubts about their standing to bring antitrust claims.

The subscribers’ lawsuit, filed in April, will now proceed on the same docket as a separate case brought by a coalition of 12 state attorneys general, which is expected to request a temporary restraining order on Friday. The states contend that the $111 billion merger could harm competition in theatrical and basic-cable markets.

Paramount Pictures filed an opposition brief, arguing that the states are unlikely to succeed and should not be granted a restraining order. Paramount’s lead counsel, Jeffrey Kessler, noted that the subscribers’ attorney, Joseph Alioto, has previously filed five similar merger-blocking actions and lost each one, emphasizing that a preliminary injunction requires a clear evidentiary showing.

Alioto, representing the private plaintiffs, said he would seek discovery that has already been provided to California and other states. He described the group as a private organization without governmental investigative tools and referenced prior filings on behalf of private parties in other high-profile merger disputes. The judge took the motion to dismiss the suit under submission and indicated she would handle the related state case as well.

Source

Variety

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