A group of New York City pension funds is seeking an injunction in Delaware Chancery Court to pause the $8 billion Paramount-Skydance merger, citing excessive benefits for Shari Redstone as controlling shareholder. The lawsuit claims that Redstone rejected a $26 billion offer from Sony and Apollo Global Management before pursuing the deal with Skydance, raising questions about fairness among minority shareholders.
The litigation comes as investors are questioning approval from the Federal Communications Commission (FCC) over concerns about “60 Minutes” interview distortions. Paramount is also considering settling a lawsuit filed by President Trump last year to resolve similar issues.
Paramount’s stockholder Scott Baker filed a class action complaint last July, arguing that the merger benefits Redstone at the expense of other shareholders. The state of Rhode Island had previously investigated and dismissed a demand for books and records, but was recently backed by Vice Chancellor J. Travis Laster who found “credible basis to infer potential corporate wrongdoing.”
The New York City Employee Retirement System and four other city pension funds have now filed a lawsuit under seal alleging a breach of fiduciary duty, seeking a preliminary injunction to block the transaction until their claims can be resolved. Paramount has warned investors that an injunction could torpedo the deal, citing substantial costs associated with indemnification of directors and officers.
Source: https://variety.com/2025/biz/news/paramount-skydance-merger-injunction-shari-redstone-pension-funds-1236301046