Execs Fear Lawsuits If CBS Settles With Trump

Paramount Global is wrestling with whether to settle President Trump’s lawsuit against its CBS News unit, and how it might do so without exposing executives to future legal threats, such as accusations of bribery.

President Trump

The Wall Street Journal reports company executives in recent weeks have talked about the risk that paying such a settlement could expose directors and officers to liability in potential future shareholder litigation or criminal charges for bribing a public official, according to people familiar with the conversations. Some executives have expressed an additional concern that such litigation may not be protected by director and officer insurance, some of the people with knowledge of the discussions said.

Paramount is awaiting regulatory approval for its merger with Skydance Media. Some executives have flagged the potential risk that if the company settles and the deal is approved in short order, the payment could be construed as a bribe, the people familiar with the matter said. 

Some executives involved in the merger see settling the lawsuit, which is focused on how CBS edited a “60 Minutes” interview with former Vice President Kamala Harris, as a way to alleviate tensions with the Trump administration, people close to them said. At Paramount, some executives oppose the settlement and the precedent it might establish.