A Paramount shareholder files a derivative lawsuit against CEO David Ellison and his father, tech billionaire Larry Ellison, alleging they reached an “illegal” side deal with President Donald Trump to secure U.S. approval for Paramount’s planned acquisition of Warner Bros. Discovery. Multiple outlets report the suit is filed in Delaware Chancery Court and seeks to block or delay the merger. The complaint alleges that the Ellisons promised to change parts of Paramount’s media operations in ways meant to align with Trump’s preferences, including claims that they would overhaul CNN and potentially remove anchors Trump disliked.
The lawsuit is described as the latest in a series of legal challenges targeting the proposed Paramount/WBD transaction. Some coverage also notes that related actions in the broader dispute include filings by other groups, such as a coalition of state attorneys general and the Writers Guild of America, though those are separate from the shareholder suit. Paramount and the Ellisons deny the allegations, with the company characterizing the claims as recycled and baseless and arguing the merger’s benefits are rooted in business and economics rather than political arrangements.
