Paramount Shareholder Sues Ellisons, Board For Alleged Side Deal, Promises To Donald Trump - Deadline

Paramount shareholder Paul Robbins has filed a derivative lawsuit in Delaware Chancery Court against CEO David Ellison, his father Larry Ellison, and the company's 10-member board, alleging breach of fiduciary duty in the pursuit of Warner Bros. Discovery.
The suit claims the company traded editorial independence for regulatory approval from the Trump administration, including alleged promises to overhaul CNN and to settle a lawsuit brought by the president against "60 Minutes."
It characterizes the conduct as an "illegal bribery scheme in breach of their fiduciary duties of loyalty," arguing this has damaged Paramount's reputation and exposed it to potential future liability.
The legal action is backed by the Freedom of the Press Foundation and the Public Integrity Project, and is the latest in a series of efforts seeking to derail the merger.
Paramount pushed back on the suit, saying it "recycles allegations that have already been reported and already addressed" and stating that neither David nor Larry Ellison made commitments to any government body regarding CNN or other news properties beyond delivering "truth-based journalism."
The company said its interactions with government officials were "routine and customary," insisted it complied with anti-bribery laws, and maintained the Warner Bros. Discovery deal "stands on its own merits," expressing confidence in moving toward closing.