Paramount Shareholder Lawsuit Alleges Ellisons Cut 'Illegal' Side Deal with Trump to Smooth Merger

A Paramount shareholder has filed a lawsuit in Delaware Chancery Court accusing David Ellison and his father Larry Ellison of making an "illegal" side deal with President Donald Trump to secure government approval for the company's proposed $111 billion merger with Warner Bros. Discovery, according to Variety. The suit, which seeks to block the transaction, claims the Ellisons promised "illegal private benefits" to Trump in exchange for removing federal regulatory barriers.

"The suit seeks to block the merger and claims the Ellisons promised 'illegal private benefits' to Trump to remove federal regulatory barriers."

The legal challenge is the fourth such lawsuit aimed at stopping the merger, Mediaite reported, joining a growing list of opposition that includes state attorneys general, Hollywood unions, and actor Alan Cumming, as noted by The A.V. Club. The new complaint specifically alleges that the side deal was a violation of corporate law and breached fiduciary duties, pushing the Ellisons' consolidation of media power further into the spotlight.

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The A.V. ClubParamount investors join lawsuits challenging David Ellison's Warner Bros. acquisitionMediaiteParamount Shareholders Accuse Ellisons of ‘Illegal’ Trump Deal in 4th Lawsuit

According to The Cultured Nerd, the lawsuit arrives just days after a coalition of state attorneys general sought to block the Paramount-Warner Bros. Discovery merger amid rising bribery accusations. The shareholder behind the latest suit is a Paramount investor who argues that the Ellisons' alleged arrangement with Trump was an improper attempt to circumvent the normal approval process, nkomode reported.

The Cultured NerdParamount Shareholders Challenge Warner Bros. Discovery Merger, Alleges Improper Trump Deal

The proposed transaction, valued at roughly $110 billion to $111 billion, has drawn scrutiny from multiple fronts. The A.V. Club highlighted concerns about Ellison's consolidation of media power and his perceived alignment with authoritarian figures, with the latest legal challenge coming from within Paramount's own investor base. As the legal battles mount, the merger's future remains uncertain, with each new lawsuit adding pressure on the deal's completion.