Consumer Lawsuit Challenging Paramount’s takeover of Warner Bros. Discovery is Dismissed
A challenge to Paramount‘s acquisition of Warner Bros. Discovery has been dismissed. The group of consumers failed to establish standing according to U.S. District Judge Araceli Martínez-Olguin. They are allowed to file a revised complaint.
The consumer lawsuit was filed in April and included five subscribers to pay-tv and streaming services who argued the merger would increase prices and decrease the diversity of viewpoints. The lawsuit also was seeking the divestiture of Skydance’s acquisition of Paramount last year.
The group of consumers challenged the merger but the judge wrote:
Plaintiffs’ standing theory amounts to little more than the assertion that they are consumers who watch television and go to the movies, and therefore a merger between entertainment companies would injure them.
Another issue in the case is that the plaintiffs’ injury was a single, historical price increase by Paramount+ but that injury wasn’t suffered in the same way by all five of the plaintiffs.
Martínez-Olguin is also presiding over two other antitrust cases over the same deal. One is the lawsuit brought by a dozen attorneys general and the other is the case brought by the Writers Guild of America. The attorneys general case has a trial date of March 2027. Another case involves shareholders claiming the Ellisons promised “illegal private benefits” to President Trump in exchange for the government approval.
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