Paramount and former President Trump are set to enter mediation concerning his $20 billion lawsuit against CBS News, as disclosed by two individuals familiar with the situation. This marks a significant turn in a contentious legal clash involving a prominent American news network.
The parties have appointed a mediator in recent days, according to the sources, who requested anonymity due to the confidential nature of the legal proceedings.
While the mediator, mandated by the court, will attempt to facilitate a settlement, there is no assurance that an agreement will materialize.
Striking a deal would be an extraordinary concession from a major U.S. media organization to a politician, especially in a dispute lacking evidence that the network misrepresented facts or harmed the plaintiff’s reputation. Mr. Trump alleges that “60 Minutes” misleadingly edited an interview last fall with former Vice President Kamala Harris, his rival in the presidential election campaign. CBS asserts that the editing is shielded under the First Amendment.
Negotiations for a potential settlement began over two months ago. The possibility of a resolution has caused discontent among certain staff members of “60 Minutes,” who feel it would permanently tarnish CBS News’s reputation. Bill Owens, the veteran executive producer for “60 Minutes,” stated during a February staff meeting that he would not issue an apology as part of any potential settlement.
Conversely, some within the organization maintain that Paramount’s broader corporate concerns outweigh the merits of engaging in a prolonged legal disagreement with a U.S. president known for leveraging his political influence against companies that incur his displeasure. Last month, attorneys for CBS News submitted a motion to dismiss Mr. Trump’s lawsuit.
A spokesperson for Paramount refrained from comment. Ed Paltzik, an attorney representing Mr. Trump in the matter, remarked: “President Trump will pursue this essential issue to its fair resolution.”
Mr. Trump initiated legal action against CBS News last year, asserting that the edits to the interview with Ms. Harris misled the audience and harmed his campaign. CBS News has refuted those assertions, claiming that the broadcast “was not manipulated or deceitful.”
In February, the Federal Communications Commission made a complete transcript of the interview public. The transcript reveals that Ms. Harris provided an extensive reply to a question regarding Israel’s prime minister. A segment of that response was featured in a preview of the interview on “Face the Nation,” a CBS program airing on Sundays. A shorter segment was broadcast the following day on an episode of “60 Minutes.”
It is a common practice among news organizations to feature excerpts from full interviews in news articles or television broadcasts for the sake of brevity.
While attorneys for CBS News and Mr. Trump exchange opposing legal documents, the company is gradually moving toward a merger with Skydance, a burgeoning Hollywood studio backed by tech billionaire Larry Ellison. Some executives at Paramount believe that resolving the case with Mr. Trump could facilitate the merger, which is pending approval from the F.C.C.
Mr. Trump stated in February that Paramount’s merger with Skydance was unrelated to his lawsuit, and a company spokesperson has indicated that the two matters are “entirely distinct.”
Shari Redstone, the controlling shareholder of Paramount, expressed in a February meeting of the company’s board of directors her support for progressing in a manner that would lead to some form of resolution, including mediation.
David Enrich contributed reporting.
