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A fourth lawsuit has been filed looking to block Paramount‘s bid to acquire Warner Bros. Discovery, this time by shareholders who accuse David Ellison and his father, Oracle scion Larry Ellison, of striking an illegal deal with President Trump for approval of the merger.
In a lawsuit filed on Tuesday in Delaware Chancery Court, the investors claim that the Ellisons promised to make sweeping changes at CNN to greenlight the merger. They also point to an alleged promise for up to $20 million in free advertising and a $16 million payment to Trump through a prior settlement by the studio’s previous ownership to resolve an allegedly frivolous lawsuit he had filed against CBS.
“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,” states the complaint.
The lawsuit brings claims for breaches of fiduciary duty for creating “enormous financial and legal risk” for Paramount. It names the Ellisons and other members of Paramount’s Board of Directors.
The legal action follows a coalition of 12 state attorneys general, the Writers Guild of America and Paramount+ subscribers suing the studio for a court order to stop the merger.
Paramount didn’t immediately respond to a request for comment.
More to come.
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https://www.hollywoodreporter.com/business/business-news/david-larry-ellison-sued-paramount-investors-trump-deal-1236649554/
Winston Cho
Almontather Rassoul
