California Retains Law Firm Milbank for Multistate Lawsuit to Block Paramount-Warner Bros. Merger

The state of California has retained the law firm Milbank to strengthen its legal challenge against the proposed merger of Paramount and Warner Bros. The move signals an escalation in the fight by a dozen states to block the major media deal, which received federal clearance in June.

States Bolster Legal Firepower

California Attorney General Rob Bonta stated the state hired the major corporate firm because "we need the firepower," anticipating a significant legal battle against Paramount's counsel. The state's legal team from Milbank will include prominent antitrust lawyers Richard Parker and James Weingarten, a former U.S. government attorney who worked on the case against Microsoft’s acquisition of Activision Blizzard.

Defending the merger for Paramount will be lead trial counsel Jeffrey Kessler of the firm Winston Taylor, alongside former U.S. Solicitor General Paul Clement. The lineup of high-profile legal experts on both sides underscores the significance of the case.

Antitrust Allegations and Federal Approval

The lawsuit, filed by California and 11 other states, alleges that the merger would consolidate too much power within the combined entity. The states argue this would enable the new company to raise prices in film and television markets, ultimately harming consumers and workers.

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This legal challenge from the states directly opposes the conclusion of the U.S. Justice Department. After an eight-month review, the DOJ cleared the transaction in June, finding that it would likely have a positive effect on competition.

Political and Legal Context

The case creates a conflict between Democratic-led states and a merger approved by the Republican Trump administration. Interestingly, Milbank was among several law firms that reached a settlement with the Trump administration last year to provide $100 million in free legal services, an agreement that some of the plaintiff states criticized at the time.

Despite that settlement, Milbank has since litigated successfully against the administration in other matters. The firm has secured court victories in cases involving tariffs and immigration policies, demonstrating its willingness to challenge the administration on multiple legal fronts.