Paramount President Jeff Shell is stepping down from his position in the wake of a recent lawsuit accusing him of violating U.S. Securities and Exchange Commission disclosure rules, although the company denied Wednesday that any regulations were broken.
Paramount issued a statement saying its Board of Directors and attorneys conducted a review of the allegations included in the lawsuit against Shell, and found no sign of wrongdoing.
“The facts demonstrated that these allegations do not establish a securities law violation,” according to a statement from the company. “Mr. Shell promptly notified (Paramount Skydance) of these accusations and is taking forceful legal action.”
Company officials said Paramount and other board members named in the lawsuit “will respond in the proceedings to the frivolous and baseless claims.”
However, “Consistent with Mr. Shell’s commitment to prioritizing PSKY’s success, he has elected to transition from his positions as president of PSKY and a member of PSKY’s Board of Directors to focus on this lawsuit. PSKY is grateful for Mr. Shell’s many contributions and to have relied on him as a valued adviser.”
Shell was sued last month in Los Angeles Superior Court by R.J. Cipriani, who said he provided crisis communications services to Shell and was owed millions of dollars. He also claimed that Shell shared with him details about Paramount’s efforts to secure broadcasting rights for UFC fights and to acquire Warner Bros. Discovery.
Shell countersued, calling Cipriani’s lawsuit a shakedown designed to “extract a massive payday.” Shell also denied owing any money to Cipriani.