Lawsuit filed for Investors who lost money with shares of Warner Bros. Discovery, Inc. (NASDAQ: WBD)

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

Investors who purchased a significant amount of shares of Warner Bros. Discovery, Inc. (NASDAQ: WBD) between February 23, 2024 and August 7, 2024, and / or those who purchased any Warner Bros. Discovery, Inc. (NASDAQ: WBD shares prior to February 2024 and continue to hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: January 24, 2025. NASDAQ: WBD investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

New York based Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. Warner Bros. Discovery, Inc. reported that its annual Total Revenue rose from over $33.81 billion in 2022 to over $41.32 billion in 2023, and that its Net Loss declined from over $7.37 billion in 2022 to over $1.54 billion in 2023.

Warner Bros. Discovery, Inc. is a global media and entertainment company that provides a portfolio of content, brands, and franchises across television, film, streaming, and gaming outlets. The Company operates through several reportable segments including, inter alia, its Networks segment, which primarily consists of its domestic and international television networks.
Warner Bros. Discovery, Inc's television networks include, inter alia, TNT, which has relied on basketball programming to drive ratings and revenue since 1988, particularly through its U.S. sports rights agreements with the National Basketball Association ("NBA"). Under its existing 2014 deal with the NBA, TNT paid an annual average fee of $1.2 billion.
In 2024, the NBA entered advanced discussions with its various partners for a new round of media-rights deals that would last approximately a decade. Warner Bros. Discovery, Inc. was unable to reach a new deal with the NBA before its exclusive negotiating window expired in April 2024, allowing the NBA to negotiate with other companies for its sports rights content, including, inter alia, NBC, which offered to pay an annual average fee of $2.5 billion, and Amazon, which offered to pay an annual average fee of $1.8 billion.
On August 7, 2024, Warner Bros. Discovery, Inc. announced that its second quarter 2024 financial results. Among other items, WBD reported disappointing revenue of $9.71 billion, representing a 6.3% year-over-year decrease and missing consensus estimates by $360 million; as well as a net loss of approximately $10 billion because of a $9.1 billion non-cash goodwill impairment charge from its Networks segment and $2.1 billion in other one-time accounting effects. WBD disclosed that the goodwill impairment charge was "triggered in response to the difference between market capitalization and book value, continued softness in the U.S. linear advertising market, and uncertainty related to affiliate and sports rights renewals, including the NBA."

Shares of Warner Bros. Discovery, Inc. (NASDAQ: WBD) declined from $9.28 per share on March 12, 2024, to as low as $6.64 per share on August 13, 2024.

The plaintiff claims that between February 23, 2024 and August 7, 2024, the Defendants made false and/or misleading statements and/or failed to disclose that Warner Bros. Discovery 's sports rights negotiations with the NBA were causing, or were likely to cause, the Company to significantly reevaluate its business and goodwill, that Warner Bros. Discovery 's goodwill in its Networks segment had significantly deteriorated as a result of the difference between its market capitalization and book value, continued softness in certain U.S. advertising markets, and uncertainty related to affiliate and sports rights renewals, including with the NBA, that the foregoing significantly increased the likelihood of Warner Bros. Discovery incurring billions of dollars in goodwill impairment charges, that accordingly, Defendants had overstated WBD's overall business and financial prospects, and that as a result, the Company's public statements were materially false and misleading at all relevant times

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.