Embattled Paramount president Jeff Shell is exiting the company following a lawsuit and allegations over leaking inside information and owing crisis communication fees.
Paramount confirmed the departure on Wednesday morning and said an internal review did not find that the executive had violated SEC disclosure rules, adding that Shell had “elected to transition from his positions as President of PSKY and a member of PSKY’s board of directors to focus on this lawsuit”.
Shell is being sued by professional gambler R. J. Cipriani, who alleges that Paramount CEO David Ellison’s second-in-command leaked inside information pertaining to the $111bn merger with Warner Bros Discovery.
Cipriani filed a $150m lawsuit last month and is also claiming that Shell is in breach of contract relating to a TV show concept, and for unpaid crisis communication fees.
Shell has countersued claiming extortion and defamation.
The departure marks the second ignominious exit for Shell in three years, after he was fired as NBC Universal CEO after an investigation revealed he had engaged in an inappropriate relationship with a female employee.
Paramount’s full statement appears below.
“PSKY’s board of directors followed standard practice and, with the assistance of independent counsel, conducted a complete and thorough review of the allegations raised in a recently filed civil complaint that Mr. Shell, PSKY’s President, had violated certain SEC disclosure rules. The facts demonstrated that these allegations do not establish a securities law violation.
“Mr. Shell promptly notified PSKY of these accusations and is taking forceful legal action. PSKY and its named board members will respond in the proceedings to the frivolous and baseless claims against PSKY and its named board members and stockholders.
“Consistent with Mr. Shell’s commitment to prioritising 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 advisor.”
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