Paramount has firmly denied allegations contained in a newly filed shareholder lawsuit accusing its leadership of compromising editorial independence to secure regulatory approval for its planned merger with Warner Bros. Discovery.
The company described the complaint as a rehash of claims that have already been made public and previously answered, insisting there were no undisclosed agreements with government officials concerning the editorial direction of CNN or any of its other news operations.
"As we've said consistently: no commitments from either David or Larry Ellison have been made to any government body, State AG, or federal agency regarding the future of CNN or any other news property, other than the goal to deliver truth-based journalism," a Paramount spokesperson said on Wednesday.
The spokesperson also pointed to previous statements issued during the 2025 Skydance-Paramount transaction, stressing that all regulatory engagements were standard practice.
"Further, as we communicated in summer 2025 regarding the Skydance-Paramount transaction: 'As with any transaction that requires regulatory approval, Skydance executives and its representatives have had routine and customary interactions with government officials, including with the Administration, Congress, and federal regulators… throughout its history and during the review of the proposed acquisition of Paramount, Skydance has fully complied with all applicable laws, including our nation's anti-bribery laws.'"
Defending the proposed Warner Bros. Discovery merger, Paramount maintained that the transaction is commercially justified and designed to strengthen competition in the media industry.
"The Warner Bros. Discovery transaction stands on its own merits," the statement continued. "Combining these two libraries and platforms gives consumers more choice, not less — greater investment in original programming, a stronger competitor to streaming rivals, and a more durable footing for journalism and storytelling alike. We remain confident in the merger's fundamentals and will continue toward closing."
The company's response follows a derivative lawsuit filed in the Delaware Court of Chancery by Paramount shareholder Paul Robbins. The suit targets Skydance CEO David Ellison, Oracle founder Larry Ellison, and Paramount's 10-member board, alleging they breached their fiduciary duties while pursuing the Warner Bros. Discovery acquisition.
At the center of the complaint are allegations that Paramount executives traded editorial independence for favorable treatment from the Trump administration during the regulatory approval process. The lawsuit claims executives encouraged the settlement of President Donald Trump's lawsuit against CBS's 60 Minutes and later took steps to reshape news coverage in ways more favorable to the president.
According to the filing, the defendants engaged in "an alleged illegal bribery scheme in breach of their fiduciary duties of loyalty to Paramount and otherwise in violation of bedrock Delaware corporate law," arguing that the company's reputation has suffered and that it faces potential legal liabilities in the future.
The lawsuit has received backing from the Freedom of the Press Foundation and the Public Integrity Project.
A derivative lawsuit differs from a traditional shareholder lawsuit because it is brought on behalf of the corporation itself rather than for the direct benefit of an individual investor. Any damages awarded would go to Paramount, although the shareholder who initiated the case could recover litigation expenses. Robbins states in the complaint that he has owned Paramount shares continuously since before the company's combination with Skydance in August 2025.
The latest legal action adds to a growing list of challenges facing the proposed $110 billion merger. A coalition of state attorneys general led by California Attorney General Rob Bonta has already sued to block the transaction on antitrust grounds while seeking a temporary restraining order. The Writers Guild of America also filed a lawsuit this week, and a separate group of Paramount+ subscribers previously sought to halt the deal.
The complaint leans heavily on previously published media reports to support its allegations.
"The media has widely reported that Lawrence and David Ellison promised illegal, private benefits to President Trump in exchange for approval of their last media mega-merger," the lawsuit states. "Specifically, in order to ensure federal regulatory approval of the merger between Ellison-controlled Skydance Media, LLC ('Skydance') and Paramount, the Ellisons promised President Trump up to $20 million in free advertising and reportedly encouraged Paramount's prior ownership to settle a frivolous lawsuit the President had filed against CBS (owned by Paramount) in his personal capacity—effectively laundering a $16 million payment to President Trump through the courts."
The filing continues: "In exchange, President Trump and the Trump-controlled Federal Communications Commission approved the deal with little to no oversight. The Ellisons also agreed to, and did, transform CBS to make its coverage far more favorable to the President, at the cost of the network's ratings."
Paramount has repeatedly rejected claims that any side agreement involving advertising or political concessions existed.
The lawsuit also alleges that, if the Warner Bros. Discovery acquisition is completed, the Ellisons intend to implement significant editorial changes at CNN, including the possible dismissal of anchors disliked by President Trump, as part of what it characterizes as promises made during the approval process.
"Once they acquire Warner Bros., the Ellisons will also have the opportunity to improperly funnel cash to President Trump by settling litigation he brought against CNN in his personal capacity prior to his reelection," the complaint alleges.
It concludes by arguing that the consequences extend beyond the current merger battle.
"The Ellisons' actions not only harm the reputations of the news outlets they currently own, which are hemorrhaging viewers, but they are latent liabilities waiting to be triggered by a future administration," the lawsuit says.
The legal battle marks the latest obstacle for Paramount as it seeks to complete one of the largest media consolidation deals in recent years, with multiple court challenges now unfolding alongside ongoing regulatory scrutiny.