Lawsuit filed for Investors in Warner Bros. Discovery, Inc. (NASDAQ: WBD) over alleged Securities Laws Violations

An investor, who purchased shares of Warner Bros. Discovery, Inc. (NASDAQ: WBD), filed a lawsuit in over alleged violations of Federal Securities Laws by Warner Bros. Discovery, Inc. in connection with certain allegedly false and misleading statements.

If you exchanged Discovery, Inc. common stock for Warner Bros. Discovery, Inc. common stock pursuant to Discovery, Inc'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. Discovery, Inc. (NASDAQ: WBD) common stock on the open market traceable to the Prospectus through the date of the filing of the complaint, you have certain options and for certain investors are short and strict deadlines running. Deadline: November 22, 2022. NASDAQ: WBD investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On May 17, 2021, AT&T Inc. (NYSE: T) and Discovery, Inc. (NASDAQ: DISCA, DISCB, DISCK) announced an agreement to combine WarnerMedia's premium entertainment, sports and news assets with Discovery's leading nonfiction and international entertainment and sports businesses to create a premier, standalone global entertainment company. AT&T Inc. (NYSE:T) and Discovery, Inc said that under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia's retention of certain debt, and AT&T's shareholders would receive stock representing 71% of the new company; Discovery shareholders would own 29% of the new company.

On April 8, 2022, Discovery, Inc. and AT&T Inc.* (NYSE: T) announced that they have closed their transaction to combine the WarnerMedia business with Discovery. The combination created Warner Bros. Discovery, Inc., which began trading on the Nasdaq with the start of trading on Monday, April 11, under the new ticker symbol "WBD."

Since then, shares of Warner Bros. Discovery, Inc. (NASDAQ: WBD) declined to as low as $11.20 per share on September 28, 2022.

The plaintiff alleges on behalf of investors who exchanged Discovery, Inc. common stock for Warner Bros. Discovery, Inc. common stock pursuant to Discovery, Inc'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. Discovery, Inc. (NASDAQ: WBD) common stock on the open market traceable to the Prospectus through the date of the filing of the complaint, that the defendants violated Federal Securities Laws. The plaintiff claims that the Defendants made materially false and misleading statements and omitted material facts in the Registration Statement and Prospectus for Warner Bros. common stock.

More specifically, the plaintiff alleges that 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. The plaintiff says that 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.

Those who purchased shares of Warner Bros. Discovery, Inc. (NASDAQ: WBD) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.