Scott Baker, who owns over 40,000 Class B shares, says the merger is designed to cash out Shari Redstone's "floundering" investment at a "substantial" premium compared to other stockholders

The complaint, filed by Berger Montague, claims the dealmaking process was unfair, with a lack of director independence and no opportunity for a vote on the merger, which is expected to close in 2025.

Lawsuits have been threatened by other Paramount investors, but this is the first action taken by a Class B shareholder in the company. It seemed almost certain that legal action was coming in Paramount Global’s new merger deal with Skydance Media.

The first lawsuit arrived Wednesday, three weeks after Paramount board members approved an $8-billion, two-phase deal with tech scion David Ellison and his backers.