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yesterday

GAMCO Files Sealed Class-Action Over Unequal Paramount–Skydance Payouts

It contends the two-step transaction disproportionately benefited Shari Redstone’s National Amusements, seeking monetary relief in Delaware Chancery for about 750 minority Class A shareholders.

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Overview

  • GAMCO filed a sealed class-action complaint in the Delaware Court of Chancery on August 13 alleging that National Amusements and its affiliates received an inequitable payout in the two-step Paramount–Skydance merger.
  • The complaint alleges that National Amusements received roughly $60 per Class A share while other holders were paid $23, based on special-committee disclosures and public filings.
  • The lawsuit seeks unspecified monetary damages on behalf of Mario Gabelli’s Value 25 Fund and about 750 separately managed GAMCO advisory clients who held Class A shares before the merger.
  • Gabelli previously pursued books-and-records demands under Section 220, obtaining nearly 10,000 pages of documents and a judge’s finding that his fund had a credible basis to suspect wrongdoing.
  • New Paramount remains controlled by the Skydance–RedBird–Ellison consortium with 100% voting power and an enterprise value near $28 billion; NAI declined to comment and Paramount has not responded.