Jeff Shell has stepped down as president of Paramount and resigned from the company’s board of directors following a $150 million lawsuit. Professional gambler R.J. Cipriani filed the suit last month, alleging Shell leaked inside information about Paramount’s planned $111 billion merger with Warner Bros Discovery. Shell, who served as CEO David Ellison‘s second-in-command, has denied the allegations and filed a countersuit claiming extortion and defamation.
Paramount confirmed the departure on Wednesday and said an internal review, conducted with the assistance of independent counsel, found no evidence that Shell had violated Securities and Exchange Commission disclosure rules. The company said Shell chose to leave both positions voluntarily to concentrate on the legal dispute. In its full statement, Paramount described Shell as a “valued advisor” and said the company was grateful for his contributions to the business since he joined its leadership team following the Skydance acquisition.
What the lawsuit claims
Cipriani’s lawsuit makes several claims beyond the alleged information leak. The complaint states Shell breached a contract related to a television show concept that the two had discussed and that Shell owes unpaid fees for crisis communications work that Cipriani says he provided. The $150 million in damages sought spans all three allegations. Shell’s legal response characterizes Cipriani’s claims as an attempt to extract money through threats and public pressure rather than legitimate grievances.
Paramount’s board members, who are also named in the complaint, called the claims against them “frivolous and baseless.” The company said it would respond through independent counsel and stressed that its own review had cleared Shell of any securities law violations. The internal investigation specifically examined whether Shell improperly disclosed material nonpublic information about the Warner Bros Discovery deal, which would constitute a federal securities offense if proven. Paramount said it followed standard procedure in conducting the review.
Second high-profile exit in three years
The departure is Shell’s second from a major media company in three years. He was fired as NBCUniversal CEO in 2023 after an internal investigation found he had engaged in an inappropriate relationship with a female employee. He later joined Paramount’s leadership under Ellison after Skydance Media completed its acquisition of the studio. That deal, which closed in 2025, valued Paramount at roughly $28 billion and placed Ellison at the helm of the combined entity.
Paramount did not name a replacement or outline any immediate changes to its leadership structure following Shell’s exit. The company’s statement focused entirely on the legal review and Shell’s decision to step down, without addressing how his responsibilities would be redistributed among remaining executives. Shell’s portfolio included oversight of Paramount’s global operations and direct involvement in the post-merger integration process that followed the Skydance deal.