Paramount is a defendant or central party in several active lawsuits tied to its dealmaking: a federal consumer antitrust case in California seeking to block its $110 billion acquisition of Warner Bros. Discovery, multiple Delaware shareholder class actions challenging the earlier Skydance-Paramount merger, and a coming multistate antitrust action being drafted by California and roughly ten other attorneys general. A separate lawsuit brought by President Trump over a “60 Minutes” interview was settled for $16 million in July 2025, but the political and legal fallout continues to shape the litigation around the company.
The Consumer Antitrust Suit to Block the Warner Bros. Discovery Deal
In April 2026, five streaming and pay-TV subscribers sued in the U.S. District Court for the Northern District of California to stop Paramount Skydance’s acquisition of Warner Bros. Discovery. The plaintiffs are Pamela Faust, Len Marazzo, Lisa McCarthy, Deborah Rubinsohn, and Gary Talewsky, represented by lead attorney Joseph Alioto.1Deadline. Paramount Warner Bros. Lawsuit Motion to Dismiss
The complaint alleges the deal violates the Clayton Act by reducing competition across streaming, theatrical distribution, and news media. Plaintiffs argue the combined company would have the ability and incentive to raise streaming subscription prices and cut the volume and variety of content, pointing to what they describe as a Paramount+ price increase after the earlier Skydance-Paramount merger.2Los Angeles Times. Consumers Sue to Block Paramount Warner Bros. Deal On theatrical distribution, they claim the merged entity would control roughly 24 percent of the domestic market and increase top-four concentration by about ten percentage points, leaving moviegoers with “fewer theatrical titles, less genre and budget variety, and fewer meaningful alternatives at local theaters.”3The Hollywood Reporter. Paramount Sued by Subscribers Over Warner Bros. Skydance Deals
The suit also raises a news-independence claim. It alleges that Skydance curried favor with the Trump administration to secure regulatory approval by agreeing to “align CBS News’s editorial posture” with the White House, undermining the credibility and vigor of CBS News reporting. Beyond blocking the WBD acquisition, plaintiffs are also asking the court to unwind the August 2025 Skydance-Paramount merger itself.4Variety. Paramount Antitrust Lawsuit Block Warner Bros. Deal Dismiss Reply
On June 3, 2026, Paramount moved to dismiss with prejudice. Lead counsel Jeffrey Kessler called the suit a “clumsy attempt to politicize antitrust litigation” and argued the plaintiffs lack standing, that their alleged injuries are speculative, and that the merger is pro-competitive because it is necessary to build a viable challenger to Netflix, Amazon, and Disney+.1Deadline. Paramount Warner Bros. Lawsuit Motion to Dismiss Paramount also opposed the plaintiffs’ motion for a preliminary injunction. A hearing is set for July 16, 2026.4Variety. Paramount Antitrust Lawsuit Block Warner Bros. Deal Dismiss Reply
The State Attorneys General Are Preparing Their Own Case
The U.S. Department of Justice cleared the WBD deal on June 12, 2026, without any required divestitures or behavioral remedies, stating that the transaction “is not likely to result in harm to competition or American consumers.”5Politico. Paramount Acquisition Warner Bros. Approved The clearance did not end the antitrust risk.
California Attorney General Rob Bonta has said the merger “is not a done deal and remains under investigation” by the California Department of Justice.6Newsweek. Paramount Warner Not a Done Deal Says California AG As of mid-June 2026, California and roughly ten other states — including New York, Washington, Oregon, Nevada, Colorado, Connecticut, Tennessee, Pennsylvania, and Massachusetts — were drafting a complaint and preparing to file, potentially within weeks.7Yahoo Finance. U.S. States Preparing Antitrust Lawsuit Bonta’s investigation has focused on whether the combined company would gain outsized leverage over filmmakers and television producers, along with concerns about layoffs and media consolidation.8Politico. Hollywood Workers Pin Hopes on Rob Bonta to Stop Paramount Deal
Paramount Chief Legal Officer Makan Delrahim, who previously ran the DOJ Antitrust Division, sent Bonta a letter in May 2026 urging California not to sue. Delrahim argued the merger would increase theatrical output, citing CEO David Ellison’s pledge to release 30 films per year with at least a 45-day theatrical window, and noted that Paramount and WBD each hold less than six percent of U.S. streaming viewership while Netflix, Disney, and Amazon together command roughly 65 percent.9Deadline. Paramount Warner Bros. California Attorney General Letter Bonta’s office responded that the acquisition remains an “active investigation.”
Shareholder Class Actions Over the Skydance-Paramount Merger
The $8 billion Skydance Media–Paramount Global merger, which closed on August 7, 2025, produced a wave of shareholder litigation that is still working through Delaware Chancery Court.
The lead case was filed on August 13, 2025, by billionaire investor Mario Gabelli’s GAMCO funds, which held approximately 12.5 percent of Paramount’s Class A voting shares. The class action alleges that Shari Redstone’s National Amusements received “unfair and inequitable” payouts — in excess of $60 per Class A share — while other Class A shareholders received just $23 per share and Class B shareholders received $15 per share.10Variety. Mario Gabelli Lawsuit Shari Redstone Paramount Skydance Merger The complaint was filed under seal and remains pending.
A separate proposed class action was filed in Delaware by shareholder Scott Baker, and a Rhode Island state employees’ pension fund also moved to challenge the deal. Both alleged the merger was structured primarily to cash out Redstone’s controlling stake and pay down National Amusements’ debt at the expense of minority shareholders who had no meaningful say.11Los Angeles Times. Paramount Skydance Deal Draws Shareholder Lawsuits
Multiple Delaware Chancery rulings have found a “credible basis to suspect wrongdoing” in the merger, including in the Gabelli case, in the Rhode Island fund proceeding, and in a June 2026 ruling involving Chicago pension funds that ordered Paramount to release board communications about the deal.12InvestmentNews. Chicago Pension Funds Win Delaware Order Over Paramount Skydance Merger Files Those rulings addressed access to records rather than final liability, but they keep the shareholder claims alive.
The Trump “60 Minutes” Settlement
President Trump sued CBS, a Paramount subsidiary, alleging that “60 Minutes” deceptively edited an October 2024 interview with then-Vice President Kamala Harris. Legal scholars widely regarded the suit as frivolous under the First Amendment, but Paramount settled in early July 2025 for $16 million while seeking Trump administration approval for the Skydance merger.13Associated Press. Paramount Will Pay $16 Million in Settlement With Trump Over 60 Minutes Interview
The $16 million was directed to Trump’s future presidential library rather than to him personally. Paramount did not admit wrongdoing or apologize, but agreed that “60 Minutes” would release transcripts of future interviews with presidential candidates.13Associated Press. Paramount Will Pay $16 Million in Settlement With Trump Over 60 Minutes Interview According to the New York Times, Shari Redstone, then the company’s controlling shareholder, encouraged the board to settle because the sale to Skydance required administration approval.14The New York Times. Trump Paramount CBS 60 Minutes Lawsuit
The deal caused internal upheaval. CBS News President Wendy McMahon and “60 Minutes” executive producer Bill Owens both resigned, reportedly having opposed it.13Associated Press. Paramount Will Pay $16 Million in Settlement With Trump Over 60 Minutes Interview Dan Rather called it a “sell-out to extortion by the President.”15Variety. Dan Rather Paramount Trump Suit Settlement Sell Out Senators Elizabeth Warren and Ron Wyden characterized the settlement as a “bribe” and called for a criminal investigation.14The New York Times. Trump Paramount CBS 60 Minutes Lawsuit The settlement itself is closed, but it continues to figure in the consumer antitrust complaint, which cites it as evidence Paramount traded editorial independence for regulatory approval.
The Delaware Disclosure Fight With Warner Bros. Discovery
One Paramount lawsuit is already over. On January 12, 2026, Paramount sued WBD and CEO David Zaslav in Delaware Chancery Court, alleging breach of fiduciary duty and seeking to force disclosure of how the WBD board valued Netflix’s $27.75-per-share offer over Paramount’s $30-per-share bid, including the board’s treatment of the “Global Networks stub equity” Netflix would leave behind and its “risk adjustments” to Paramount’s offer.16CNBC. Paramount Skydance Warner Bros. Discovery Suit
On January 15, Vice Chancellor Morgan Zurn rejected Paramount’s motion to expedite the case, finding no “irreparable harm” because Paramount, as a shareholder, was not being forced into an immediate tender decision.17Variety. Judge Rejects Paramount Motion to Expedite Warner Bros. Discovery Trial WBD called the suit “meritless.”18The Hollywood Reporter. Paramount Loses Bid to Fast Track Warner Bros. Disclosures The dispute became moot weeks later when WBD accepted Paramount’s improved $31-per-share bid.
What Is at Stake if the Litigation Delays Closing
The deal is structured with heavy penalties for delay. If the merger fails to close because of regulatory obstacles, Paramount owes WBD a $7 billion termination fee, and Paramount has agreed to fund the $2.8 billion breakup fee WBD owes Netflix for walking away from the earlier agreement.19Deadline. Netflix Big Breakup Fee Paramount WBD Deal
A “ticking fee” of $0.25 per share payable to WBD shareholders begins accruing if the deal has not closed by December 31, 2026, worth roughly $650 million per quarter.20Paramount. Paramount Enhances Its Superior All-Cash Offer for Warner Bros. Discovery Warner Bros. Discovery shareholders approved the merger on April 23, 2026, and the companies expect to close in the third quarter of 2026.21Reuters. Warner Bros. Shareholders Back Merger With Paramount Skydance The July 16 hearing in the consumer antitrust case, the multistate complaint the attorneys general are drafting, and the pending Delaware shareholder actions will determine whether that timeline holds.