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DISCOVERY, INC. AND WARNER BROS. DISCOVERY, INC. CLASS ACTION ALERT: Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York
Globe Newswire 28-Sep-2022 12:18 PM
NEW YORK, Sept. 28, 2022 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against Discovery, Inc. ("Discovery") and Warner Bros. Discovery, Inc. (NASDAQ:WBD) ("Warner Bros.") and certain of the Company's senior executives (collectively, "Defendants") on behalf of investors who:
exchanged Discovery common stock for Warner Bros. common stock pursuant to Discovery's February 4, 2022 Registration Statement on Form S-4 and Joint Proxy Statement/Prospectus filed with the Securities and Exchange Commission on February 10, 2022, or
purchased shares of Warner Bros. common stock on the open market traceable to the Prospectus through the date of the filing of the complaint (the "Class Period").
All investors who purchased the shares and incurred losses are advised to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses you may, no later than November 22, 2022, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
The filed complaint alleges the Defendants made materially false and misleading statements and omitted material facts in the Registration Statement and Prospectus for Warner Bros. common stock. The complaint's allegations related to the merger between Discovery and the WarnerMedia business of AT&T (the "Merger"). The Merger was announced on May 17, 2021 and closed on April 8, 2022. Pursuant to the Merger, Discovery combined its business with WarnerMedia to form Warner Bros.
At the time of filing the Registration Statement and Prospectus, Defendants either knew or had access to adverse information concerning operations of the WarnerMedia business. Among other things, as subsequently disclosed by Defendants after the Merger:
WarnerMedia's HBO Max streaming business had a high churn rate that made the business not "viable" unless the churn rate was reversed,
AT&T was overinvesting in WarnerMedia entertainment content for streaming, without sufficient concern for return on investments,
WarnerMedia had a business model to grow the number of subscribers to its streaming service without regard to cost or profitability,
WarnerMedia was improvidently concentrating its investments in streaming and ignoring its other business lines, and
WarnerMedia had overstated the number of subscribers to HBO Max by as many as 10 million subscribers, by including as subscribers AT&T customers who had received bundled access to HBO Max, but had not signed onto the service. That adverse information was not disclosed to Discovery shareholders in the Registration Statement or Prospectus or otherwise prior to the effective date of the Merger.
From April 11, 2022, the first trading day after completion of the Merger, to the date prior to filing of the operative complaint, Warner Bros. market price has declined by 52.4%, to $11.79 per share.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP Patrick Donovan, Esq. Gregory Stone, Director of Case and Financial Analysis Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com Tel: (800) 575-0735 or (212) 545-4774
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