A coalition of 12 states led by California has asked a federal court to stop the proposed Paramount-Warner Bros. transaction from closing while an antitrust lawsuit moves forward.

The states filed a motion on Monday seeking a temporary restraining order and a preliminary injunction. They want the court to act before July 22, the earliest date Paramount has said it could complete the deal.

States Argue Deal Will Reduce Competition

The coalition claims the transaction would harm competition in the entertainment industry.

In the motion, the states argued that, “The Transaction will eliminate competition between Paramount and Warner Bros. and enable the combined entity to raise prices and reduce output.”

The filing added, “Plaintiff States have an interest in enforcing antitrust laws and their citizens face the risk of profound and irreversible injury in the absence of an injunction.”

Earlier on Monday, the states sued to block the $111 billion transaction. They alleged that the deal violates federal antitrust law in three markets. These include wide-release theatrical distribution, blockbuster film distribution and basic cable television distribution.

The states also argued that the merger would hurt consumers, theatre owners and cable and satellite companies.

Paramount Rejects Claims

Paramount Skydance pushed back against the lawsuit. The company said the states misunderstood both the facts and the law.

“Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs,” the company said.

Court Decision Could Shape Merger’s Future

The states must convince the court that their case is likely to succeed. They must also show that allowing the deal to close would cause irreparable harm.

According to the filing, reversing the effects of the merger would be difficult if the transaction closes before the case ends.

California Attorney General Rob Bonta said the coalition will continue its legal challenge.

“These titans of industry must not move to merge until a court properly evaluates our claims,” Bonta said.

“Today, alongside a coalition of attorneys general, I’ve filed an emergency motion asking the court to immediately stop this merger. I will not let Warner Bros. and Paramount merge without a fight.”