A federal judge denied Paramount+ subscribers' request to block the merger with Warner Bros. Discovery, though a coalition of states plans to challenge the merger in court.
Subscribers' Attempt Fails
Subscribers filed a lawsuit in April, alleging price hikes and reduced viewing options due to the merger. During a hearing, Judge Araceli Martinez-Olguin denied the preliminary injunction, citing a lack of evidence from the plaintiffs. The judge expressed serious doubts about their standing to pursue antitrust claims.
State Attorneys General Step In
The merger faces a significant challenge as 12 state attorneys general seek a temporary restraining order to halt the $111 billion deal, arguing it will harm competition in theatrical and basic cable markets. Paramount filed opposition, stating the states are unlikely to succeed and should not receive a restraining order.
Paramount's lead lawyer, Jeffrey Kessler, argued against the subscribers' lawsuit in Oakland. He noted that their attorney, Joseph Alioto, had unsuccessfully filed similar actions before, often with the same plaintiffs.
Legal Strategies and Previous Lawsuits
Paramount moved to dismiss the subscribers' suit, which Judge Martinez-Olguin took under submission. Alioto, representing the subscribers, mentioned plans to amend the suit by obtaining discovery from attorneys general. He emphasized their position as a private group without government resources.
Alioto has previously filed lawsuits against major mergers, including Microsoft-Activision and T-Mobile-Sprint. He stated that these efforts were endorsed by Senator Harry Reid due to the Department of Justice's inaction.
Broader Legal Landscape
The private party suit is linked to the states' case, meaning Judge Martinez-Olguin will handle both. The Writers Guild of America has also filed a federal antitrust suit against the merger, and other groups have lodged shareholder derivative suits in Delaware Chancery Court.
Source: https://variety.com/2026/film/news/paramount-subscribers-fail-injunction-merger-1236813567/
