Five of New York City’s pension funds have filed a class-action lawsuit seeking to pause Paramount’s pending $8 billion merger with Skydance Media, alleging that controlling shareholder Shari Redstone and members of Paramount’s special committee that evaluated bids breached their fiduciary duty.
The complaint, which was filed on Feb. 4 against board members Barbara Byrne, Linda Griego, Judith McHale and Susan Schuman and unsealed on Monday, alleges that the group failed to sufficiently consider an alternative $13.5 billion offer from Project Rise Partners, which the New York City Employees’ Retirement System says is superior to the Skydance deal.