Mancuso, Paramount May Settle

Former Paramount Pictures Chief Frank Mancuso is expected today to settle a $45-million lawsuit against his ex-employer.

Terms of the out-of-court settlement were unknown, but the deal was said to be the result of weeks of negotiations between the two sides. Representatives of Mancuso and Paramount could not be reached for comment Sunday.

Mancuso sued the motion picture studio’s parent, Paramount Communications Co., when Stanley Jaffe was named to the newly created position of president and chief operating officer in March.

Mancuso said the appointment violated a stipulation in his contract that he report directly to Paramount Chairman Martin S. Davis. Mancuso also maintained that he was abruptly fired following Jaffe’s appointment.