Shareholder Alert: Wolf Popper LLP Announces the Filing of Securities Class Action Lawsuit Against Discovery, Inc. and Warner Bros. Discovery, Inc. (WBD)

New York, New York--(Newsfile Corp. - September 23, 2022) - Today, prominent investor rights law firm Wolf Popper LLP ("Wolf Popper") filed a class action lawsuit for violations of the federal securities laws in the U.S. District Court for the Southern District of New York against Discovery, Inc. ("Discovery") and Warner Bros. Discovery, Inc. ("Warner Bros.") 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").

The case is captioned Collinsville Police Pension Board on Behalf of Collinsville Police Pension Fund v. Discovery, Inc. and Warner Bros. Discovery, Inc., et al., No. 1:22-cv-8171 (S.D.N.Y.). A copy of the complaint is available on Wolf Popper's website by clicking here.

The complaint alleges the Defendants made materially false and misleading statements and omitted material facts in the Registration Statement and Prospectus for Warner Bros. common stock. The complaint's allegations related to the merger between Discovery and the WarnerMedia business of AT&T (the "Merger"). 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 Warner Bros.

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. Among other things, as subsequently disclosed by Defendants after the Merger, (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. 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.

As a result, the Registration Statement and Prospectus and certain of the Defendants' other public statements, contained untrue statements of material fact or omitted to state material facts required to be stated therein or necessary to make the statements therein not misleading, in violation of Sections 11 and 12(a)(2) of the Securities Act.

From April 11, 2022, the first trading day after completion of the Merger, to the date prior to filing of this complaint (September 23, 2022), Warner Bros. 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.

Deadline to Seek Appointment as Lead Plaintiff

If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than November 22, 2022. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Robert Finkel of Wolf Popper at 212-451-9620, or via e-mail at rfinkel@wolfpopper.com.

About Wolf Popper

Wolf Popper has successfully recovered billions of dollars for defrauded investors. Wolf Popper's reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. For more information about Wolf Popper, please visit the Firm's website at www.wolfpopper.com.

Attorney Advertising: Prior Results Do Not Guarantee A Similar Outcome.

Contact

Wolf Popper LLP
Robert C. Finkel
845 Third Avenue
New York, NY 10022
Tel.: (212) 451-9620
Tel.: (877) 370-7703
Email: rfinkel@wolfpopper.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/138304