Paramount Seeks to Settle Trump’s $20B Lawsuit During FCC Review

Background of the 60 Minutes Interview Controversy

Paramount Global, the parent of CBS News, is reportedly preparing to settle the $20 billion defamation lawsuit filed by former President Donald Trump over a 60 Minutes segment. Trump’s complaint, lodged in a federal district court in Texas, alleges that CBS “deceptively manipulated” excerpts of a pre-election interview with then–Vice President Kamala Harris to portray her as taking inconsistent positions on Israeli Prime Minister Benjamin Netanyahu.

Settlement Negotiations Underway

According to internal sources cited by the New York Times and Los Angeles Times, Paramount’s board met on April 18 to define a financial framework for an out-of-court resolution. While precise figures have not been disclosed, board members have signaled they are prepared to authorize a settlement if it expedites FCC approval for the Skydance Media merger.

• Mediation sessions began on May 1 under a confidential process governed by the Federal Arbitration Act.
• Paramount’s legal team has emphasized that any settlement will include a non-apology clause to preserve CBS’s First Amendment defenses.
• Trump’s counsel, including former U.S. Attorney Kevin Urick, is reportedly seeking broad injunctive relief to prohibit future segments deemed “distorted.”

FCC Regulatory Hurdles and Technical Review Process

Paramount’s urgency stems from the need to obtain Federal Communications Commission consent to transfer its nationwide television broadcast station licenses to Skydance Media. Under Section 310(d) of the Communications Act, any assignment of a full-power TV station requires a Declaratory Ruling from the FCC. The transaction also triggers a public interest review under Section 309 of the Act.

FCC Chairman Brendan Carr, who was promoted shortly after Trump’s administration, has invoked the agency’s seldom-used “news distortion” policy (47 C.F.R. § 73.2080). While the Biden-era majority previously dismissed a conservative group’s petition, Carr revived the investigation explicitly citing the Harris segment. Technically, the FCC’s inquiry examines whether CBS “intentionally distorted” news in violation of its broadcast license obligations.

Technical Specifications of Broadcast License Transfers

The merger review requires a detailed Technical Narrative demonstrating how Skydance will comply with ATSC 3.0 digital television standards, maintain Emergency Alert System (EAS) integrity, and uphold signal coverage requirements (40 dBμ V/m grade A contour). An engineering exhibit must also show that the proposed transfer will not cause interference to co-channel or adjacent-channel stations, as calculated under § 73.622(e) of the FCC’s rules.

Analysis: Editorial Independence and Industry Precedents

Bill Owens, executive producer of 60 Minutes, resigned last week, alleging that Paramount’s legal strategy compromised editorial autonomy. In his resignation memo, Owens warned that media conglomerates may increasingly apply corporate risk assessments to limit investigative journalism—creating a chilling effect.

Media law experts note that high-stakes defamation suits weaponized against news organizations could set a precedent chilling First Amendment protections. Professor Howard Wasserman of Florida International University commented, “Large-volume damages claims—far exceeding any conceivable proof of reputational harm—function as strategic lawsuits against public participation (SLAPPs). Courts have consistently shown reluctance to entertain such claims.”

Expert Perspectives on Media Law and FCC Policy

• John Bergmayer, senior counsel at Public Knowledge, argues that the FCC’s news distortion policy lacks clear procedural safeguards and could violate administrative law principles under the Administrative Procedure Act (APA).
• Broadcast engineer Sandra Lee points out that technical compliance filings often take 120 days to review, but Carr’s political intervention risks compressing this timeline and setting a new regulatory precedent.
• First Amendment attorney Floyd Abrams has suggested that any settlement clause barring further criticism of the Trump administration could itself be struck down as an unconstitutional prior restraint.

Potential Industry Impact and Future Outlook

If Paramount finalizes a settlement, it may accelerate the FCC’s deliberations on the Skydance merger, although Carr has publicly denied any linkage. A rapid approval could embolden other media companies to consider legal settlements as a lever in regulatory proceedings—a strategy that raises complex questions about the separation of editorial decisions, legal risk management, and political influence.

Conclusion

Paramount’s reported willingness to settle with Trump underscores the high stakes at the intersection of media law, FCC regulation, and corporate mergers. As negotiations proceed, industry observers will be watching closely to see whether legal strategy or journalistic integrity ultimately prevails—and what precedent this case may set for broadcast news in the digital age.