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Paramount Skydance said on Wednesday that President Jeff Shell is stepping down from his role and board position following allegations tied to U.S. Securities and Exchange Commission (SEC) rules, though the company described the claims as unfounded.
Shell, who had overseen daily operations since the merger of Paramount Global and Skydance Media, will leave to concentrate on an ongoing lawsuit, the company said in a statement.
The dispute stems from a $150 million legal complaint filed by Las Vegas gambler and informant R.J. Cipriani, who alleges Shell failed to honor a commitment to develop a music program titled "Serenata De Las Estrellas." Cipriani claims he provided high-level advisory services over more than a year without payment in exchange for the project.
Shell has denied the allegations and filed a countersuit accusing Cipriani of extortion and defamation, according to media reports.
Paramount Skydance said it conducted an internal review of the accusations raised in the civil complaint and concluded they did not amount to violations of securities law. The company added that Shell is pursuing "forceful legal action" in response.
"Consistent with his commitment to the company's success, he has chosen to step aside and focus on this matter," Paramount said, expressing appreciation for his contributions.
Shell's role had already been under scrutiny amid shifting leadership dynamics following recent industry consolidation moves. Reports indicated he did not have a clearly defined position in future restructuring plans.
The executive previously served as chief executive of NBCUniversal, part of Comcast, before departing in 2023 after acknowledging an inappropriate relationship with an employee.
Earlier reviews by external counsel had reportedly cleared Shell of separate claims that he leaked confidential information.
