By Daren DeFrank
The Freedom of the Press Foundation is weighing its legal options following Paramount Global鈥檚 $16 million dollar settlement with President Donald Trump after the nonprofit filed a shareholder information demand asking for a litigation hold.
鈥淭oday is a dark day for press freedom. Paramount鈥檚 spineless decision to settle Trump鈥檚 baseless and patently unconstitutional lawsuit is an insult to the journalists of 鈥60 Minutes鈥 and an invitation to Trump to continue targeting other news outlets,鈥 Seth Stern, director of advocacy at Freedom of the Press Foundation, said in a statement. 鈥淓ach time a company cowers and surrenders to Trump鈥檚 demands it only emboldens him to do it again. It will be remembered as one of the most shameful capitulations by the press to a president in history.鈥
FPF, a press freedom advocacy group, already filed a shareholder information demand back in May and said Wednesday it鈥檚 exploring further legal action to hold Paramount鈥檚 board accountable for what it sees as a capitulation to Trump that violates shareholders鈥 interests and the First Amendment. The organization itself is a shareholder.
The FPF called out the settlement as a conflict of interest and said it was 鈥渋ntended to clear the way for federal approval鈥 in the sale of Paramount to Skydance Media which would also 鈥渞esult in a multimillion-dollar payout to Paramount Chair Shari Redstone.鈥
The nonprofit already filed a shareholder information demand to Redstone and announced Wednesday they are sending a second demand to uncover information regarding the decision. Based on the information, the FPF 鈥渨ill continue to pursue our legal options to stop this affront to Paramount shareholders, CBS journalists and the First Amendment.鈥 The initial filing called the lawsuit 鈥渇rivolous鈥 and notified Paramount of its intention to take legal action in the event of a settlement with Trump.
Many have called the settlement problematic with three U.S. senators (Elizabeth Warren, Bernie Sanders and Ron Wyden) launching an investigation into whether paying off Trump through a settlement to obtain approval of the sale would violate federal bribery and other laws. The California Senate opened a similar investigation.
鈥淲ith Paramount folding to Donald Trump at the same time the company needs his administration鈥檚 approval for its billion-dollar merger, this could be bribery in plain sight,鈥 Warren said in a Wednesday statement to TheWrap. 鈥淧aramount has refused to provide answers to a congressional inquiry, so I鈥檓 calling for a full investigation into whether or not any anti-bribery laws were broken.鈥漈he settlement with Trump covers legal fees and other costs, as well as a donation that will be allocated to a 鈥渇uture presidential library.鈥 Paramount also said that 鈥渋n the future, 鈥60 Minutes鈥 will release transcripts of interviews with eligible U.S. presidential candidates after such interviews have aired, subject to redactions as required for legal or national security concerns.鈥
Notably, the settlement does not include any statement of apology or regret from CBS or 鈥60 Minutes.鈥
Paramount co-CEO George Cheeks addressed the settlement in a shareholder call early Wednesday morning and said the decision allows the company to focus on 鈥渃ore objectives, rather than being mired in uncertainty and distraction.鈥
Trump initially sued CBS and 鈥60 Minutes鈥 for $20 billion, claiming that an Oct.7 interview with former Vice President Kamala Harris was deceptively edited and caused him 鈥渕ental anguish.鈥
Trump鈥檚 legal team called the settlement a 鈥渨in for the American people.鈥濃淲ith this record settlement, President Donald J. Trump delivers another win for the American people as he, once again, holds the Fake News media accountable for their wrongdoing and deceit,鈥 a spokesperson for Trump鈥檚 legal team said in a statement. 鈥淐BS and Paramount Global realized the strength of this historic case and had no choice but to settle.鈥
Paramount did not immediately respond to TheWrap鈥檚 request for comment.