Paramount Television agrees to a $16 million settlement with President Trump over the 60 Minutes lawsuit
In a controversial move, media conglomerate Paramount has agreed to pay $16 million to former President Donald Trump to settle a lawsuit over the editing of a 60 Minutes interview with Vice President Kamala Harris during the 2024 election.
The settlement, which faces an uncertain future in a Delaware court system that generally defers to corporate leaders, has sparked a wave of criticism and concern. Senators Ron Wyden, Elizabeth Warren, and Bernie Sanders sent a letter to Paramount CEO Shari Redstone, cautioning her about potential federal bribery statute violations in relation to Trump's lawsuit against CBS.
The leadership of Paramount in the dispute over the settlement appears to be provided by its CEO and top executives. However, the company did not respond to the letter.
Some, like Jameel Jaffer, director of the Knight First Amendment Institute at Columbia University, have described the settlements as "surrender" or "payoff." Jaffer compared the situation to the McCarthy era, stating that while there are similarities, McCarthy was just a senator, and now it's the president of the United States doing the bullying.
The aim of ABC's settlement was to pave the way for a smoother relationship with the president during his second term. The consolidation of the broadcast news media into a handful of sprawling corporations has made litigation a plausible strategy for enforcing journalistic standards.
The editing of the 60 Minutes interview with Harris and Stephanopoulos's characterization of a sexual assault case were deemed meritless by some. Ann Lipton, a business law scholar at the University of Colorado, Boulder, described the suit as "something of a Hail Mary." Christine Sautter, from Southern Methodist University, agreed that the suit is an uphill battle.
The incentive for the settlement appears to be financial, as the media conglomerate is awaiting FCC approval for an $8 billion merger with Skydance. The Freedom of the Press Foundation, a shareholder in Paramount, is considering filing a suit against Redstone and the rest of the company's board, alleging a violation of their fiduciary duty.
The FCC chair, Brendan Carr, has been criticized for wearing a golden bust of Donald Trump as a lapel pin. Clayton Weimers, head of Reporters Without Borders, called the Paramount settlement "shameful."
In response to the controversy, Paramount has remained silent. The settlement, if successful, would force Paramount's directors to pay damages to the company itself, potentially leading to further financial and reputational damage.
