A securities class action has been filed in the USDC — S.D.N.Y. against Warner Bros, Discovery, Inc. (WBD) (“WBD” or the “Company”), on behalf of all those that purchased or otherwise acquired WBD securities between February 23, 2024 and August 7, 2024, both dates inclusive (the “Class Period”).
WBD 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.
The claim arises on August 7, 2024, when WBD issued a press release announcing its second quarter 2024 financial results.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
(1) WBD’s sports rights negotiations with the NBA were causing, or were likely to cause, the Company to significantly reevaluate its business and goodwill;
(2) WBD’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;
(3) the foregoing significantly increased the likelihood of WBD incurring billions of dollars in goodwill impairment charges;
(4) accordingly, Defendants had overstated WBD’s overall business and financial prospects; and
(5) as a result, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.
On this news, WBD’s stock price fell $0.69 per share, or 8.95%, to close at $7.02 per share on August 8, 2024
If you purchased WBD securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information.”
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