With new authorized muscle, the nonprofit Freedom of the Press Basis is upping stress on Paramount World to desert efforts to settle President Trump’s $20-billion lawsuit focusing on CBS and “60 Minutes.”
Revered Washington litigator Abbe David Lowell this week joined the staff representing the New York advocacy group, which has vowed to sue Paramount ought to it settle with Trump. The group owns Paramount shares.
Lowell, who has represented Hunter Biden, Ivanka Trump and Jared Kushner, is engaged on the case with lawyer Norm Eisen, a Trump critic who helped Home Democrats with technique throughout Trump’s first impeachment hearings in 2019.
Eisen is a former ambassador to the Czech Republic who served as White Home ethics advisor below President Obama.
Late Thursday, the 2 attorneys despatched a strongly worded letter to Paramount’s chairwoman and controlling shareholder Shari Redstone and different board members arguing {that a} Trump settlement would trigger “catastrophic” hurt to the embattled media firm.
Hunter Biden (left) along with his lawyer Abbe Lowell (proper) at a Home committee listening to final yr.
(Jose Luis Magana / Related Press)
1st Modification consultants have labeled Trump’s lawsuit frivolous. However Paramount leaders are determined to finish the Trump drama and a few consider a truce might clear a path for the Federal Communications Fee to approve the corporate’s $8-billion sale to David Ellison’s Skydance Media.
Paramount wants the FCC to authorize the switch of the CBS station licenses to the Ellison household.
“The board is legally and morally obligated to protect the company, not auction off its integrity for regulatory approval,” Lowell mentioned.
The FCC assessment of Skydance’s proposed takeover of Paramount has change into a slog. Skydance and Paramount face an October deadline to finalize the sale or the deal might collapse.
Paramount, in a press release, mentioned that it’s treating the FCC assessment and the Trump lawsuit as separate issues. “We will abide by the legal process to defend our case,” a company spokesman mentioned.
Paramount’s attorneys entered mediation with the president’s authorized staff in late April, however no decision has been reached. Paramount provided $15 million to Trump to finish his go well with, in response to the Wall Avenue Journal, however the president rejected the overture and requested for extra.
On Thursday, Redstone disclosed that she has been identified with thyroid most cancers and is receiving therapy. Final month, docs eliminated her thyroid however most cancers cells had unfold to her vocal chords.
Of their seven-page letter, Lowell and Eisen informed Paramount’s leaders that, ought to they approve a Trump settlement to realize traction on the FCC, they’d be violating their fiduciary responsibility to shareholders and probably breaking federal anti-bribery statutes.
“We believe [a settlement] could violate laws prohibiting bribery of public officials, thereby causing severe and last damage to Paramount and its shareholders,” Lowell and Eisen wrote.
“To be as clear as possible, you control what happens next,” they mentioned.
The admonition follows an analogous warning from three U.S. senators — Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt) and Ron Wyden (D-Ore.) In a Might 19 letter, the senators wrote that paying cash to Trump to assist win clearance for the Paramount sale might represent a bribe.
“It is illegal to corruptly give anything of value to public officials to influence an official act,” the three senators wrote of their letter.
As well as, two California Democrats have proposed a state Senate listening to to look at issues with a doable Trump settlement.
Earlier this week, Paramount requested shareholders to extend the dimensions of its board to seven members on the firm’s annual investor assembly subsequent month.
The Freedom of the Press Basis was created in 2012 to guard and defend public curiosity journalism.
This spring, Lowell left his former main legislation agency, Winston & Strawn, the place he had been a companion for years. He shaped his personal boutique agency, Lowell & Assoc., with a concentrate on “public interest representation in matters that defend the integrity of the legal system and protect individuals and institutions from government overreach,” in response to its web site.
Lowell’s agency additionally consists of lawyer Brenna Frey, who made a high-profile exit from one other outstanding legislation agency, Skadden Arps, after it lower a take care of Trump to keep away from changing into a goal. That legislation agency agreed to offer $100 million in free authorized companies.
Final month, Frey appeared on CBS’ “60 Minutes” to air her resolution to resign from Skadden Arps.
