Paramount says its board of directors followed “standard practice” in evaluating the conduct of President Jeff Shell before his exit from the company.
In a statement Wednesday, Paramount expressed thanks to Shell for serving as a “valued advisor” to the company. He joined RedBird Capital, a key backer of Skydance, in 2023 before the production company’s eventual merger with Paramount Global.
Shell, who had been ousted as CEO of NBCUniversal following an inappropriate relationship with a CNBC reporter, was revealed Wednesday to be finalizing his exit from Paramount.
As a seasoned media veteran, Shell was relied upon by David Ellison, formerly Skydance’s chief and now CEO of Paramount, to help with the lengthy merger process as well as overall strategy. Paramount subsequently prevailed in a months-long effort to acquire Warner Bros. Discovery, with its $110 billion offer edging out a rival bid by Netflix that had initially been accepted by WBD. The massive transaction is expected to close by September.
Along the way, Shell was accused by professional gambler RJ Cipriani of leaking inside information. Cipriani had infiltrated the entertainment industry in recent years via creative projects, PR services and other means. Along with blowing the whistle on Shell’s allegedly unauthorized revelations of company dealings with the UFC, WBD and President Trump, Cipriani has claimed the exec owes him $150 million.
The board “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 statement said. “The facts demonstrated that these allegations do not establish a securities law violation.”
Shell “promptly” notified the company about Cipriani’s accusation, the statement added, and is taking “forceful legal action” in responding to them.
Paramount and members of its board “will respond in the proceedings to the frivolous and baseless claims” against them, the statement said. Using the company’s ticker symbol as shorthand, it concluded, “Consistent with Mr. Shell’s commitment to prioritizing 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.”