President Trump is a bully. He’d sue an ant if he thought it snatched his last crumb.
He’s sued media organizations, contractors, and so many more. He keeps an army of attorneys at his beck and call and now, as president, he has the entire Department of Justice to manage his mayhem.
That’s why, at first, I cringed when Paramount settled that man’s $10 billion lawsuit for $16 million, or less than one percent of the baseless lawsuit. But the reality is that Paramount Global’s recent choice to settle President Donald Trump’s defamation lawsuit shows the kind of practical thinking California’s media and entertainment companies have leaned on for years.
Settling this lawsuit, for Paramount, is tantamount to smacking a meddlesome and odious flea off one’s arm.
Settling will protect the company’s business operations, allowing its subsidiary CBS to continue leading the charge in holding the Trump administration accountable each and every day.
California’s creative industries — think film, TV, and streaming platforms — face relentless legal pressures. Lawsuits come with the territory of telling stories about big names and touchy subjects. Claims like defamation or reputational damage are practically built into the budget for major studios. They don’t wonder if a legal fight’s coming, they plan for when they’ll hit.
That’s why settling early is a go-to move in California’s business world. From Hollywood studios to tech-driven content platforms, companies often choose to wrap things up fast because it keeps the chaos to a minimum, allowing them to continue creating, innovating, and — in journalism — holding powerful feet to the fire without interruption.
When a lawsuit makes waves, it puts everything on the line: a company’s public image, investor trust, even its team’s focus. In entertainment, where how people perceive a brand can make or break its value, letting a high-profile case drag on is often just inviting trouble to stick around.
The Paramount suit is a perfect example of that. While the company, which owns CBS, has made it its mission to hold this chaotic, dysfunctional, and self-serving administration accountable daily, the outlandish accusations made by President Trump and his supporters have threatened its reputation, its employees, and its ability to move forward.
Settling doesn’t mean saying “we messed up.” It’s a tool to dodge economic uncertainty and keep a costly legal mess from eating up a company’s time and money.
Big lawsuits pull resources, distract executives, and throw long-term plans off track. For media companies whose businesses depend on creativity and quick decisions, that’s often a nightmare.
By handling the suit quietly and professionally, Paramount sidestepped a bigger circus, kept their brand’s momentum going, and got back to focusing on what matters — delivering for its shareholders, protecting their employees, and keeping up the good fight of holding the Trump administration accountable going without interruption.
Jason Altmire, a former Democratic member of Congress who chaired the Small Business Subcommittee on Oversight and Investigations, supported Paramount’s decision to settle, saying:
The idea that this settlement is validation of the president’s point of view is absurd. CBS News, the Paramount division at the center of the controversy, has been one of the most consistent institutions in criticizing Mr. Trump’s administration during his second term. Paramount clearly isn’t trying to cozy up to the White House, so why do some pundits and politicians insist they are?
From a dollars-and-cents perspective, settling is about keeping costs in check. Court fights can stretch on forever, with appeals, surprise rulings, and sky-high legal bills piling up, not to mention the projects the company is too distracted to pursue. Paying a set amount to move on often makes far more sense.
There’s a human side to this too. Media companies have a duty to look out for their writers, editors, and creative folks, shielding them from the stress of endless court appearances, depositions and legal battles. Settling lets the company’s team know that corporate has got their back. This keeps them focused on churning out the content that keeps the business humming. Jobs are preserved, stories keep moving forward, and the broader mission remains protected.
The choice to settle ripples both inside and outside the company. Within, it keeps spirits high and creativity flowing. Outside, it builds confidence with audiences, partners, and investors. Once the legal storm passes, the company can get back to telling stories that hit home.
In the end, Paramount made a calculated call, the kind of choice California businesses wrestle with all the time when legal trouble looms.
When it comes to lawsuits, the right economic decision is not to fight to the bitter end, especially when the fight is with a presidential bully who has unlimited influence and resources. The appropriate economic decision is to play the long game, to make the right move to protect one’s mission, people, and future.
I don’t like it, but I get it. Paramount made a smart business decision. That’s just common sense at work.
Dr. Julianne Malveaux is President Emerita of Bennett College for Women, the former Dean of the College of Ethnic Studies at California State University Los Angeles, and a frequent guest on ABC, CNN, MSNBC, NBC, and Fox News.
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