Legal matters
In April 2023, Costello filed a pro se lawsuit against Paramount Global, Inc. (formerly ViacomCBS) in the U.S. District Court for the Southern District of New York (Case No. 1:23-cv-01553), alleging fraudulent inducement, IP theft, RICO violations, and suppression related to a 2018 TV development deal. The suit claims CBS executives stole her comedy script idea during a pitch meeting, induced a fraudulent contract via misrepresentations, and used arbitration clauses and internal investigations to bury the claims amid the 2018 Les Moonves #MeToo scandals, which she alleges were a smokescreen for merger fraud. The case also invokes the Ending Forced Arbitration of Sexual Assault Act (EFAA, 9 U.S.C. § 402) to override arbitration, citing ongoing coercion as "continuing harassment." U.S. District Judge Lorna G. Schofield dismissed the case with prejudice on August 18, 2024, for failure to arbitrate, adopting U.S. Magistrate Judge Valerie Figueredo's recommendation. Costello appealed to the Second Circuit (No. 25-794) on April 10, 2025. The appeal alleges judicial bias (recusal motion filed September 22, 2025, forwarded to panel September 28) and ties the case to broader CBS/Paramount shareholder suits over merger disclosures. As of October 2025, the appeal remains pending, with Costello actively posting updates on X (formerly Twitter). ==References==