Paramount Skydance Corporation (NASDAQ: PSKY) announced that Jeff Shell will transition from his roles as president and board member following allegations of SEC disclosure rule violations, according to a company statement.

The company's board of directors conducted a review of allegations contained in a civil complaint against Shell and determined they do not establish a securities law violation. Shell notified PSKY of the accusations and is pursuing legal action in response.

Shell elected to step down from his positions to focus on the lawsuit, according to the statement. The company described the claims against PSKY and its board members as "frivolous and baseless" and said it will respond in legal proceedings.

PSKY expressed gratitude for Shell's contributions and said he will continue as a valued advisor. The company operates through three business segments: Studios, Direct-to-Consumer, and TV Media, with brands including Paramount Pictures, CBS, Nickelodeon, MTV, and Paramount+.

The statement did not provide details about the nature of the SEC disclosure allegations or specify when Shell's transition will be completed. The company also did not announce an interim replacement for the president role.