This Week in Chancery Court: Paramount, Skydance Merger Records

The Delaware Chancery Court will rule this week on a demand for Paramount Global‘s internal files about its merger with Skydance Media.

A look at what else is on the court’s calendar:

Tuesday: Gabelli Value 25 Fund v. Paramount Glob., Del. Ch., 2024-1353, bench ruling 4/8/25.

At issue: Money manager Mario Gabelli sought Paramount’s books and records about the Skydance merger so investors can determine how controlling stockholder Shari Redstone might benefit from the deal. Gabelli’s funds own about 12% of Paramount voting shares. Senior Magistrate in Chancery Selena E. Molina presided over a one-day trial last week to determine whether Gabelli is entitled to inspect any of the film and TV company’s documents, and, if so, the appropriate scope of an inspection.

Court action: Molina will deliver an oral ruling via teleconference.

Gabelli Pushes Paramount for Files in Fight Over Skydance Deal

Wednesday: Black Diamond Com. Fin. LLC v. Longstreet, Del. Ch., No. 2024-1026, hearing 4/9/25.

At issue: Del Monte Foods Inc. creditors went to trial in February in their pursuit of a court order declaring they have the right to take over its board. Black Diamond Commercial Finance LLC, on behalf of a group of lenders, claims the canned food company defaulted on a $725 million financing agreement when it shifted assets securing the loan to newly-created subsidiaries. Vice Chancellor Lori W. Will now hears closing arguments in the case. The company says in a brief that Black Diamond lacks standing to pursue its claims.

Court action: Post-trial arguments will be heard in Wilmington, Del.

Del Monte Foods Creditors File Lawsuit in Board Takeover Bid

Wednesday: Local Bounti Corp. v. Fairchild US LLC, Del. Ch., No. 2024-1223, hearing 4/9/25.

At issue: Local Bounti Corp., an indoor agriculture company, seeks a ruling of default judgment in its lawsuit alleging lender Fairchild US LLC used another company as a shell to shield it from liability over loans it promised but couldn’t pay. Local Bounti claims Fairchild US deliberately misrepresented that it could lend about $230 million for greenhouses in Texas, Ohio, and Washington in order to convince Local Bounti to pay millions in deposits. Fairchild US says in a brief that it only recently became aware of the pending litigation and it needs more time to respond to Local Bounti’s complaint.

Court action: Arguments on the motion for default judgment will be heard in Wilmington, Del.

Indoor Agriculture Company Sues Lender Fairchild US for Fraud