Paramount shareholder sues Ellisons over alleged Trump deal tied to WBD takeover

A Paramount Skydance shareholder has sued David and Larry Ellison, alleging they offered improper benefits to Donald Trump to eliminate federal regulatory barriers to Paramount’s proposed $111 billion acquisition of Warner Bros. Discovery.

The stockholder derivative lawsuit, filed July 14, 2026, in Delaware Chancery Court, seeks to block the merger and recover unspecified damages. Lead plaintiff Paul Robbins alleges the Ellisons and Paramount’s board breached their fiduciary duties by exposing the company to legal, financial and reputational risks.

The complaint claims the alleged arrangement included an opportunity to direct money to Trump by settling his legal claims against CNN. It also alleges the Ellisons indicated that CNN anchors disliked by Trump could be dismissed after Paramount acquired the network’s parent company.

Trump is not named as a defendant, and the lawsuit’s claims have not been proven.

Paramount rejected the allegations, saying the complaint repeats previously reported claims that the company has already addressed. A spokesperson said neither David nor Larry Ellison had made commitments to government agencies or officials about CNN or other news properties beyond supporting what the company called truth-based journalism.

The company said the WBD transaction should be evaluated on its business merits and would create a stronger competitor in streaming, increase investment in programming and provide a more stable foundation for its journalism and entertainment operations.

Paramount also cited its statements during the 2025 regulatory review of Skydance’s acquisition of Paramount Global. The company said its executives had routine interactions with government officials and complied with applicable laws, including federal anti-bribery statutes.

Twelve states seek to halt Paramount-Warner Bros. Discovery deal

The shareholder case follows a separate antitrust lawsuit filed July 13, 2026, by California and 11 other states. The states allege the Paramount-WBD combination would reduce competition in theatrical film distribution and cable television licensing. The Writers Guild of America has also challenged the transaction, arguing it could reduce employment opportunities and compensation for writers.

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The Justice Department cleared the acquisition in June without requiring Paramount to sell assets or make other concessions. The shareholder complaint alleges senior department officials approved the transaction despite concerns among some lower-level antitrust attorneys.

The lawsuit also questions why the proposed financing has not prompted a review by the Committee on Foreign Investment in the United States. Paramount has lined up $24 billion from sovereign wealth funds connected to Saudi Arabia, Qatar and the United Arab Emirates, according to the complaint.

Paramount has said those investors would not receive board representation or voting shares, making a CFIUS review unnecessary. The complaint argues the ownership arrangement could nevertheless face increased scrutiny under future administrations and create long-term risks for shareholders.

Robbins has owned Paramount shares continuously since before Skydance and Paramount Global completed their merger Aug. 7, 2025. His attorneys include Thomas Law, the Public Integrity Project and the Freedom of the Press Foundation.

The defendants include David and Larry Ellison and Paramount board members Gerry Cardinale, Safra Catz, Andrew Brandon-Gordon, Paul Marinelli, John Thornton, Barbara Byrne, Andrew Campion, Justin Hamill and Sherry Lansing.