NEW YORK--(BUSINESS WIRE)--Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Discovery, Inc. ("Discovery") and Warner Bros. Discovery, Inc. ("Warner Bros.") (NASDAQ: WBD) and certain of the Company's senior executives (collectively, "Defendants") on behalf of investors who (1) 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 (2) 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"). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/wbd.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws.
This Action relates to the merger (the "Merger") between Discovery and the WarnerMedia division of AT&T, Inc. Pursuant to the Merger, Discovery combined its business with WarnerMedia to form Warner Bros.
The Complaint alleges that defendants made materially false and misleading statements and omitted material facts in the Registration Statement and Prospectus concerning the operations of the WarnerMedia business. However, that adverse information was not disclosed to Discovery shareholders in the Registration Statement or Prospectus or at any time before the vote on the Merger or the effective date of the Merger. Specifically, defendants failed to disclose that, (1) WarnerMedia's HBO Max streaming business had a high churn rate that made the business not "viable" unless the churn rate was reversed, (2) AT&T was overinvesting in WarnerMedia entertainment content for streaming, without sufficient concern for return on investments, (3) WarnerMedia had a business model to grow the number of subscribers to its streaming service without regard to cost or profitability, (4) WarnerMedia was improvidently concentrating its investments in streaming and ignoring its other business lines, and (5) 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.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/wbd or you may contact Peretz Bronstein, Esq. or his Law Clerk and Client Relations Manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Warner Bros. you have until November 22, 2022 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC represents investors in securities fraud class actions and shareholder derivative suits. The firm has recovered hundreds of millions of dollars for investors nationwide. Attorney advertising. Prior results do not guarantee similar outcomes.
