Shareholder Lawsuit Accuses Ellisons of Corruption in Paramount Deal

Edited ArticleA Paramount shareholder has filed a lawsuit alleging corruption involving the company's controlling shareholders, Larry Ellison and David Ellison, as Paramount Skydance seeks to complete its reported US$111 billion acquisition of Warner Bros. Discovery, Meg James reported for the Los Angeles Times.

A Delaware lawsuit challenges the proposed Paramount transaction, alleging misconduct by controlling shareholders. (Photo: Oracle Corporate Communications Flickr)

Filed this week in Delaware, the lawsuit alleges that the Ellisons made "illegal promises and payments to secure regulatory approval" for Paramount's acquisition.

According to the complaint, Larry Ellison allegedly discussed with President Donald Trump how the proposed merger would reshape CNN's leadership and operations. The lawsuit further alleges that the Ellisons secured the winning bid by promising sweeping changes at CNN and other benefits to President Trump.

The case was filed on behalf of shareholder Paul Robbins by the nonprofit Public Integrity Project and the Freedom of the Press Foundation.

The complaint also notes that Netflix withdrew from the bidding process in February, the same day Co-Chief Executive Ted Sarandos met with then-Attorney General Pam Bondi and another senior administration official at the White House.

The lawsuit alleges that Netflix recognized the regulatory challenges surrounding the transaction and that President Trump favored the Ellison family's bid because of their close relationship.