Did you lose money on investments in Warner Bros. Discovery? If so, please visit Warner Bros. Discovery, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, NY / ACCESSWIRE / September 28,2022 / Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who: (1) exchanged Discovery, Inc. ("Discovery") common stock for Warner Bros. Discovery, Inc. ("WBD") common stock pursuant or traceable to Discovery's February 4, 2022 Registration Statement on Form S-4 (the "Registration Statement") and Joint Proxy Statement/Prospectus filed with the SEC on February 10, 2022 (the "Prospectus"), or (2) purchased shares of WBD common stock on the open market traceable to the Prospectus through the date of the filing of the complaint. The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Act of 1933.
The lawsuit relates to the merger (the "Merger") between Discovery and the WarnerMedia division of AT&T, Inc. 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 WBD. Each Discovery common shareholder received in the Merger one share of WBD common stock for each Discovery common share owned, and each Discovery preferred shareholder received shares of WBD common stock in an agreed ratio. AT&T received directly from WBD the balance of the outstanding and issued WBD common shares and contemporaneously distributed those shares to AT&T's shareholders. Each AT&T shareholder received .241917 shares of WBD for each AT&T share owned.
Plaintiff alleges that Defendants made material misstatements in, and omitted material from, the Registration Statement and Prospectus, including that (i) WarnerMedia's HBO Max streaming business had a high churn rate that made the business not "viable" unless the churn rate was reversed, (ii) AT&T was overinvesting in WarnerMedia entertainment content for streaming, without sufficient concern for return on investments, (iii) WarnerMedia had a business model to grow the number of subscribers to its streaming service without regard to cost or profitability, (iv) WarnerMedia was improvidently concentrating its investments in streaming and ignoring its other business lines, and (v) 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.
From April 11, 2022, the first trading day after completion of the Merger, to the date prior to filing of the Complaint (September 23, 2022), WBD's market price fell by 52.4%, from $24.78 to $11.79 per share, as the market became aware of the foregoing misrepresented and omitted facts.
If you wish to serve as lead plaintiff, you must move the Court no later than November 22, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery does not require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or otherwise acquired WBD common stock, and/or would like to discuss your legal rights and options please visit Warner Bros. Discovery, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected].
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SOURCE: Bernstein Liebhard LLP