– Paramount Skydance is facing growing legal pressure over its proposed $110 bn merger with Warner Bros. Discovery after a Paramount investor sued David Ellison, Larry Ellison and the company's board, alleging they struck an 'illegal' side deal with US President Donald Trump to secure federal approval for the transaction. According to Variety, the lawsuit claims the defendants promised editorial changes at news outlets and other concessions in exchange for regulatory support. Paramount dismissed the allegations as 'recycled' and without merit.
The shareholder lawsuit follows a separate legal challenge from a coalition of 12 Democratic state attorneys general seeking to block the merger on antitrust grounds. The states argue the deal would reduce competition, increase prices and harm workers and consumers by creating an overly dominant media company. Paramount has defended the transaction, arguing it would strengthen competition and benefit audiences while rejecting the states’ claims.
– Companies are increasingly turning to lower-cost open-source AI models as rising computing costs force businesses to rethink spending, according to Amazon chief technology officer Werner Vogels.
As reported by Fortune, Vogels – speaking at the United Nations' AI for Good Summit – said many organizations no longer need the most advanced proprietary AI models for every task and are instead choosing more affordable alternatives that deliver sufficient performance. He said companies are becoming more selective about where they deploy premium AI systems from providers such as OpenAI, Anthropic and Google DeepMind while relying on open-source models for less demanding workloads.
The shift comes as corporates look to rein in mounting AI expenses and improve cost efficiency, a trend also seen in the governance space. Vogels added that transparency is another advantage of open-source models, particularly in sectors where understanding how AI systems make decisions is critical.
– The American Bar Association (ABA) has asked a federal judge to order the White House to release records related to Trump’s executive orders targeting major law firms, arguing the documents could reveal whether the administration acted to intimidate lawyers representing clients or causes it opposed.
According to Reuters (paywall), the request is part of the ABA’s ongoing lawsuit challenging the executive orders, which it says have undermined access to legal representation by discouraging firms from taking on public interest cases.
The group is seeking communications involving White House officials and outside advisers connected to the orders, arguing the records are relevant to determining the administration’s intent. The Trump administration has denied wrongdoing and has sought to dismiss the lawsuit, maintaining the president acted within his constitutional authority.
– Activist investor Elliott Investment Management has built a significant stake in CCC Intelligent Solutions, adding to speculation over the software company’s future as it explores a potential sale, according to Bloomberg News (paywall).
Elliott’s involvement is reportedly being led by investors from its private equity business, although the size of its holding was not disclosed. The investment comes days after it was reported that CCC had hired Morgan Stanley to explore strategic options and had contacted potential buyers, including private equity firms.
CCC provides cloud-based software and AI-powered workflow tools to the auto insurance and collision repair industries.
– A US federal judge has dismissed a shareholder lawsuit accusing Starbucks of misleading investors by hiding declining sales in its two largest markets, the US and China.
As reported by Reuters, the lawsuit alleged the coffee chain and former CEO Laxman Narasimhan misled investors during a January 2024 analyst call by suggesting sales trends were improving when they were already weakening. However, US district judge John Chun ruled that Starbucks’ explanation that Narasimhan was referring to the previous quarter’s results was at least as plausible as the shareholders’ allegations of fraud.
The case stemmed from a 16 percent drop in Starbucks’ share price on May 1, 2024, after the company cut its annual sales forecast and reported a 4.4 percent decline in same-store sales, including declines of 3 percent in the US and 11 percent in China. The shareholders, led by three New York pension plans, have not yet commented on the ruling.
– Burberry shareholders approved a new executive pay policy that could significantly increase CEO Joshua Schulman's compensation, although more than one-third of investors opposed the proposal.
According to Reuters, at the company’s AGM, 63 percent of shareholders voted in favor of the remuneration plan while 37 percent voted against it, reflecting concerns raised by proxy advisers ISS and Glass Lewis.
Under the new policy, Schulman could receive performance share awards worth up to 300 percent of his salary, taking his maximum potential compensation to £12.24 mn ($16.46 mn) if Burberry meets performance targets and its share price rises 50 percent.
Burberry said it had consulted shareholders before the vote and would continue engaging with investors following the level of opposition, as required under UK corporate governance rules.
Natalie Bannerman
Natalie is a former telecoms and infrastructure journalist, a role she held for nearly seven years. Before this, she worked in the B2C startup space, covering lifestyle, arts and culture reporting. As senior reporter for Governance Intelligence she...
