The state attorneys general for Iowa and Montana have asked the U.S. Supreme Court to block what they say is California’s “politicized” lawsuit aimed at stopping the merger between Paramount and Warner Bros. Discovery.
Iowa Attorney General Brenna Bird and Montana’s Austin Knudsen — both Republicans — filed a motion with the SCOTUS on Tuesday seeking to have the high court throw out the antitrust lawsuit filed by Democrat California AG Rob Bonta, who, along with 11 other states, is seeking to scuttle Paramount’s plans, according to Variety.
“Plaintiffs, the State of Iowa and State of Montana, respectfully move this Court for leave to file the attached Bill of Complaint to stop a politicized enforcement action that seeks to block the Paramount-Warner Bros. merger,” the filing with the Supreme Court reads.
The filing seems like a long shot as it is unclear if interfering in state antitrust cases is within the Supreme Court’s jurisdiction, several experts told the paper.
However, the two AGs say that appealing to the Supreme Court is their only option to stop Bonta’s political grandstanding.
“Twelve states have effectively vetoed a transaction that the other thirty-eight, and the United States, declined to challenge,” Tuesday’s motion says. “No other forum can resolve that controversy. Congress made this Court’s jurisdiction over controversies between two or more states exclusive. … This Court is not merely the best forum for this controversy. It is the only one.”
The two AGs add that Bonta’s attack on Paramount has a negative impact on their state economies, “especially the tens of thousands of employees of Paramount and Warner Bros., as well as hundreds of millions who watch their movies, shows, and news through a variety of sources. Iowans and Montanans are being deprived of the benefits of the deal that DOJ and their own state attorneys general approved.”
“This case is about the legal limits on politicized antitrust enforcement by a small handful of states seeking to enjoin a $110 billion merger that the United States, most American states, and competition regulators worldwide have cleared,” the filing by Iowa and Montana’s AGs adds. “Plaintiff States have the same interest that Defendant States have in well-functioning markets, but believe the merger will help their economies. Because they have the same interest, they should be able to litigate the issue, but can only do so here [before the Supreme Court].”
The AGs also say that Bonta’s lawsuit interferes with federal antitrust determinations that the administration has already made.
Bonta has recently faced pressures to settle his lawsuit and let Paramount’s merger get on its way.
Both the Director’s Guild of America (DGA) and IATSE, have urged Bonta to settle his lawsuit against Paramount’s acquisition of Warner Bros. and have published an open letter urging the AG to wrap things up.
“While we have been consistent in our view that mergers, such as this one, historically offer few benefits to workers, we are also particularly concerned about the negative impact a delay in the decision regarding the proposed merger will have on our members and the industry at large,” the two unions wrote early this month.
Democrat Gov. Newsom also urged Bonta to settle his lawfare against Paramount. Newsome is afraid that killing the merger will end up costing the entertainment industry even more jobs and that will make him look bad in his quest for the 2028 Democrat Party nod for president.
Bonta recently refused to take a meeting with Paramount to discuss the issues the AG feels need to be addressed about the merger.
But a day later, he suddenly claimed he is willing to meet if “purported leaks” about the dealings are put too a stop.
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