A federal court has scheduled a hearing for Friday to evaluate an emergency request by the attorneys general of 12 states to temporarily halt Paramount's proposed merger with Warner Bros. Discovery. The states are seeking a temporary restraining order to stop the process while the antitrust case is ongoing.

U.S. District Judge P. Casey Pitts was appointed to this case earlier on Tuesday. Pitts was appointed as a federal judge by President Joe Biden. The hearing will take place at 10 a.m. Pacific Time. The court also set a deadline for Thursday at noon for Paramount to respond to the temporary restraining order.

The states are asking the judge to make a decision by July 22, warning that otherwise the company will close the deal after that date. This date coincides with the period when the European Union is expected to make a decision regarding the status of the transaction. The U.S. Department of Justice had previously approved this deal.

These developments could have a significant impact on the future of the merger between Paramount and Warner Bros. Discovery. The states' legal action is seen as part of a broader discussion questioning the potential effects of the merger on competition.