California lawmakers ask former CBS leaders to testify on proposed settlement with Trump
California state Sens. Tom Umberg and Josh Becker are asking former CBS leaders to testify in a probe into Paramount's offer to settle a legal fight with President Donald Trump for $15 million.
The Democrats said in a letter Friday that they are opening an inquiry into whether the CBS parent company violated California anti-competitiveness law or breached ethical boundaries by caving to a 'frivolous' suit. In the letter to former CBS News CEO Wendy McMahon and ex-60 Minutes Executive Producer Bill Owens the senators questioned if the company considered settling 'to secure favorable regulatory treatment' and said such behavior would raise 'deeply troubling implications not just for journalism, but for the rule of law and the integrity of corporate governance.'
Semafor first reported the development.
Key context: Owens left the network in April citing concerns about his show's independence amid the legal battle with Trump, in which the president claimed an interview with former Vice President Kamala Harris was deceptively edited. Paramount officials disputed the claim but nevertheless offered Trump a $15 million settlement, according to the Wall Street Journal, but Trump reportedly refused the deal, seeking more money.
McMahon abruptly stepped down from her role earlier this month, saying she disagreed with the company on how to proceed.
Details: Umberg and Becker, who chair their chamber's judiciary and energy committees, respectively, raised concerns that the settlement could be illegally anticompetitive, putting in-state media outlets that could not afford such a settlement at a disadvantage. They also said they're seeking to find out whether Paramount violated federal anti-bribery laws, breached its duty to shareholders or misused corporate funding by offering it to Trump.
'Your recent resignations from CBS's leadership, amid public reports of internal concern about the editorial and ethical implications of the proposed settlement, suggest that you may possess important, first-hand knowledge relevant to our legislative oversight responsibilities,' they wrote to the former CBS leaders.
A Paramount spokesperson declined to comment.
What's next: The senators haven't yet set a date for the joint hearing, but said it would be only the beginning of their inquiry and asserted their committees' subpoena power under state law.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
29 minutes ago
- Wall Street Journal
10-Year Treasury Yield Heads Toward Largest Decline Since April 14
1316 ET — The yield on the 10-year U.S. Treasury note is headed toward its biggest one-day decline since April 14 after a pair of lackluster reports on the U.S. economy. Yields, which fall when bond prices rise, began sliding early in the session after the ADP's National Employment report showed that 37,000 jobs were created in May, the slowest pace of private-sector hiring in two years. Economists polled by The Wall Street Journal projected hiring would increase by 110,000 new jobs. Yields extended their decline after an ISM services report, which suggested that activity among service firms fell unexpectedly in May. The survey's index for new orders and inventories both sank into contraction, with respondents reporting difficulty in planning due to uncertain tariff policies. The 10-year yield recently traded near 4.36%, down from 4.46% Tuesday. ( 0841 ET – An ominous sign from the U.S. labor market triggers a rush to Treasury bonds, driving yields sharply lower. ADP says only 37,000 jobs were created by private employers in May, the lowest since March 2023. Economists surveyed by WSJ expected 110,000. ADP revises the April figure to 60,000 from 62,000 and says hiring is losing momentum while pay growth remained at robust levels. The report may reflect businesses reluctance to hire amid tariffs uncertainty. Trump cites the report to call on the Fed to lower rates. Friday, payrolls are expected to slow a little from April. The 10-year is at 4.419% and the two-year at 3.931%. ( @ptrevisani)
Yahoo
30 minutes ago
- Yahoo
Gold Turns Higher on Increased Uncertainty
Gold prices gain as comments from President Trump instill some new economic worries heading into the summer. Trump posted on his Truth Social account that China's President Xi was "extremely hard to make a deal with," and also demanded Fed Chair Jerome Powell lower interest rates.
The Hill
30 minutes ago
- The Hill
Doug Ford urges Canada's leader to ramp up tariffs on US
Ontario Premier Doug Ford is pressuring Canada's Prime Minister Mark Carney to ramp up tariffs against the United States after President Trump doubled tariffs on steel and aluminum earlier this week. 'I highly recommended to the prime minister directly that we slap another 25 percent on top of our tariffs to equal President Trump's tariffs on our steel,' Ford said during his Wednesday appearance on CNN's 'Situation Room.' 'He has to, he has to start looking around the world at China and other locations that are taking Chinese steel and really stop the flow of steel. That's the problem,' Ford told host Wolf Blitzer. 'Canada is not the problem. Again. We purchased 30 billion, with a 'B,' of steel off the US, and that's going to come to an end real quick.' Trump signed the executive order to hike the tariffs on Tuesday. The measure went into effect on Wednesday and would levy steel and aluminum tariffs on almost all imports to the U.S.. The United Kingdom is exempt as it inked a trade deal with Washington last month. Canada has retaliated against the U.S. previously, slapping a 25 percent reciprocal tariff on U.S. aluminum and steel products. Carney, who met with Trump at the White House in early May, did not express readiness to implement Ford's suggestion. 'We will take some time, not much, some time because we are in intensive discussions right now with the Americans on the trading relationship,' Carney said to reporters on Wednesday, according to Politico. 'Those discussions are progressing. I would note that the American action is a global action. It's not one targeted in Canada, so we will take some time, but not more,' the prime minister said. Ontario is open to imposing its own countermeasures, according to Ford. When asked on Wednesday if willing to bring back the electricity surcharge, he told reporters that 'everything's on the table.' Ontario implemented a 25 percent extra charge on the electricity Canada exports to three U.S. states after Trump threatened to double tariffs on steel and aluminum. Ford eventually spoke to Commerce Secretary Howard Lutnick and later suspended the tax impacting Michigan, New York and Minnesota.
