Paramount Pictures is seeking a three-day evidentiary hearing as U.S. District Judge Araceli Martinez-Olguin considers whether to issue a preliminary injunction that would halt its acquisition of Warner Bros. Discovery. The hearing is set to take place in late August, with the exact dates yet to be determined.

The request for an evidentiary hearing comes as the court weighs the antitrust lawsuit brought by California and 11 other states against Paramount and Warner Bros. Discovery. The lawsuit alleges that the merger would substantially lessen competition in the market, and the states are seeking to block the deal.

In a filing with the court, Paramount’s legal team argued that the states are seeking an ‘extraordinary and drastic remedy’ in the form of a preliminary injunction. They claimed that the injunction would pause the merger for at least eight months without giving the company an opportunity for a full and fair hearing.

Paramount’s lawyers also pointed out that the judge has already recognized that there are disputes regarding the facts that need to be resolved to fully analyze the competitive effects of the transaction. They argued that an evidentiary hearing would allow the court to do so regarding critical factual issues, including market definition, real-world competitive dynamics, barriers to expansion, and incentives.

The stakes are high, with Paramount facing a ticking fee of $7 million per day if the deal is not closed by September 30. The company’s legal team estimated that a preliminary injunction would cost Paramount over $1 billion in ticking fees and other additional costs.

The judge set a briefing schedule in which the state AGs’ opening brief is due on Thursday, and the company response is due on Monday. The state AG reply is due on July 30. Paramount’s legal team proposed a schedule in which opening briefs would be filed on July 28, the company reply on August 7, and the AG response on August 12.

A spokesperson for California Attorney General Rob Bonta did not immediately return a request for comment. At the hearing on a temporary restraining order last week, the attorney for the state AGs, James Weingarten, opposed an earlier Paramount scheduling proposal, saying that it was intended to speed up the proceedings. ‘Having two experts in a food fight in a month will just waste everyone’s time and resources, if it’s even possible,’ he said.

The Writers Guild of America has also filed a motion for a preliminary injunction as part of its separate lawsuit. The guild is seeking to align its hearing with the states on August 3. Paramount’s legal team wrote that such a schedule was ‘not feasible,’ but that it would be possible for a later date in August.

The merger between Paramount and Warner Bros. Discovery has already received the green light from the European Union. However, the antitrust lawsuit and the request for a preliminary injunction have put the deal in jeopardy. The outcome of the evidentiary hearing will have significant implications for the merger and the future of the entertainment industry.