Paramount and Ellisons Face Shareholder Lawsuit Over Alleged Trump Deal

Paramount Pictures and its co-founders David and Larry Ellison were sued in Delaware Chancery Court by an investor who alleges they secured a secret agreement with President Donald Trump to facilitate the $111 billion merger with Warner Bros. Discovery. The complaint, filed by an unnamed shareholder, claims the Ellisons promised President Donald Trump concessions such as changes at CNN and financial payments in exchange for regulatory approval of the deal, according to The Hollywood Reporter. Variety reported that the lawsuit seeks to block the merger and obtain damages, describing the alleged arrangement as illegal. The plaintiff also alleges that the Ellisons traded editorial independence of the combined company for the regulatory green light.

The filing contends that the transaction is tainted by the purported political quid-pro-quo. Paramount responded, saying the lawsuit repeats claims already addressed in prior proceedings, as stated in a company statement reported by Deadline. The studio asserted that the allegations are based on previously resolved matters and that it will vigorously defend against the suit. The plaintiff, however, maintains that the Ellisons exchanged editorial independence for approval, according to the complaint.