Paramount Skydance (PSKY) had its Monday meeting with California officials canceled after State Attorney General Rob Bonta accused the entertainment company of leaking details and negotiating in bad faith over its proposed multi-billion merger with Warner Bros. Discovery (WBD), The New York Times reported.

The suspended talks between Bonta and Paramount CEO David Ellison were intended to explore a settlement of the lawsuit, which California and 11 other states filed last month to block the $110.9 billion buyout. Bonta called off the session late Sunday, citing a breach of confidentiality regarding preliminary discussions held on Friday.

California and its partner states are expected to demand structural remedies to resolve antitrust concerns, including requiring the combined company to sell or split off specific cable assets from post-merger control. This demand may focus on preventing the combined entity from controlling certain assets, according to reporting from The Wall Street Journal.

Paramount representatives did not immediately respond to a MT Newswires request for comment on this story.