The government’s case accused the studios of violating the Sherman Antitrust Act in their total control over movie distribution and exhibition. In July 1938, the government reversed its stance toward Hollywood and filed its lawsuit against seven major studios: Paramount, Universal, MGM, Twentieth Century-Fox, Warner Bros., Columbia and RKO. Roosevelt during the Great Depression, under the auspices of the National Industrial Recovery Act. Declared guilty of violating antitrust law in 1930, the studios were nonetheless able to resume functioning as normal after concluding a controversial deal with the government of President Franklin D.

The forerunner of the case was a 1928 antitrust lawsuit brought by the Federal Trade Commission against the Famous Players-Lasky Corporation (the forerunner to Paramount) and nine other major film studios. Paramount Pictures, et al., the government’s long-running antitrust lawsuit against Paramount Pictures and seven other major Hollywood movie studios.

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