Paramount Skydance chief David Ellison and his tech billionaire dad Larry Ellison have been sued by a Paramount shareholder who alleges they cut an "illegal" deal with President Donald Trump to secure U.S. governmental approval for the takeover of Warner Bros. Discovery.

Paramount Skydance lashed out at a coalition of 12 Democratic state attorneys general that sued to block the David Ellison-led company's takeover of Warner Bros. Discovery.

The lawsuit claims that the Ellisons illegally promised to overhaul CNN as the administration looks to reshape media. The complaint follows a coalition of state attorneys general,…