FOR IMMEDIATE RELEASE:
Freedom of the Press Foundation (FPF) has informed Paramount Global executives that it plans to file a lawsuit if Paramount settles with President Donald Trump over his court case against CBS News.
News reports indicate Paramount Global is prepared to settle Trump’s frivolous and unconstitutional complaint against its subsidiary, CBS News, over its editing of an interview with then-Vice President Kamala Harris. United States senators and others have said the purpose of settling may be to bribe the president to clear the path for Paramount to finalize a merger with Skydance Media.
We’ve written previously about how Trump’s complaint against CBS is a clear First Amendment violation and threatens the basic press freedom rights of other news outlets.
So today, FPF sent a letter to Paramount Chair Shari Redstone to put her and other Paramount executives on notice that it plans to file a shareholder’s derivative lawsuit should Paramount settle with Trump, and to demand that Paramount preserve all records that may be relevant to its claims. FPF is a Paramount Global shareholder.
A derivative lawsuit is a procedure that allows shareholders of a company to recover damages incurred due to impropriety by executives and directors. Any damages award would go to Paramount, not FPF.
Paramount executives have reportedly feared liability for settling, and this week, U.S. Sens. Ron Wyden, Bernie Sanders, and Elizabeth Warren opened an investigation of whether settling would violate bribery laws and asking whether Paramount had evaluated the risk of derivative liability.
FPF Director of Advocacy Seth Stern said:
“Corporations that own news outlets should not be in the business of settling baseless lawsuits that clearly violate the First Amendment and put other media outlets at risk. A settlement of Trump’s meritless lawsuit may well be a thinly veiled effort to launder bribes through the court system. Not only would it tank CBS’s reputation but, as three U.S. senators recently explained, it could put Paramount executives at risk of breaking the law.
“Our mission as a press freedom organization is to defend the rights of journalists and the public, not the financial interests of corporate higher-ups who turn their backs on them. When you run a news organization, you have the responsibility to protect First Amendment rights, not abandon them to line your own pockets.
“We hope Paramount will reconsider the dangerous path it appears to be contemplating but, if not, we are prepared to pursue our rights as shareholders. And we hope other Paramount shareholders will join us.”
John Cusack, an FPF founding board member, activist and actor, added, “I’m proud that Freedom of the Press Foundation is doing what CBS’s corporate owners won’t — standing up for press freedom and against authoritarian shakedowns. People who aren’t willing to defend the First Amendment should not be in the news business.”
You can read FPF’s letter here.
Please contact us if you would like further comment.
