In a recent legal ruling, New York State Supreme Court Justice Margaret Chan adjudicated in favor of Paramount Global on specific claims following a lawsuit initiated by Warner Bros. Discovery earlier this year concerning streaming rights to the long-standing animated series "South Park."

Justice Chan determined that Paramount did not violate state consumer protection laws by featuring "South Park" specials on its streaming platform, Paramount+. This decision comes subsequent to a lawsuit filed by Warner in February, alleging that Paramount engaged in deceptive practices by withholding these specials and other "South Park" content to enhance Paramount+ offerings.

Paramount declined immediate comment on the ruling, while Warner Bros. opted not to provide a statement regarding the matter.

The legal dispute arose following Warner's payment of $500 million to Paramount in 2019 for streaming rights to the extensive back catalog of "South Park" episodes, comprising over 20 seasons, intended for streaming on HBO Max, now rebranded as Max. Paramount had initially proposed a shared rights arrangement across its streaming platforms, a proposal which Warner rejected, given the series' significance to Paramount's Comedy Central channel.

Tensions escalated when Paramount exclusively released "South Park: Post Covid" in 2021 and "South Park: The Streaming Wars" in 2022 on Paramount+, prompting Warner's lawsuit, which seeks damages totaling hundreds of millions of dollars. Warner also contends that Paramount's actions led to overpayment under the terms of the agreement.

In response, Paramount filed a countersuit in April, seeking $50 million in unpaid fees from Warner and refuting allegations of breaching the agreement. However, Justice Chan dismissed Paramount's counterclaim in October, ruling that Paramount did not engage in false advertising regarding the specials outlined in the original 2019 agreement.

Warner's suit also alleged that Paramount's conduct misled consumers and caused confusion regarding the streaming platform holding rights to the animated series.

Justice Chan dismissed this claim by Warner, characterizing it as a "private contract dispute" that did not adversely affect consumers. She further noted that Warner's evidence failed to substantiate allegations of deceptive practices by Paramount.

While certain claims have been resolved, Warner's assertions of breach of contract, tortious interference, and unjust enrichment remain active. Justice Chan has ordered a preliminary conference between the two parties to take place on December 13, indicating that legal proceedings in this high-profile case are ongoing.