Overview

A class action lawsuit has been filed against Warner Bros. Discovery, Inc. (“WBD” or the “Company”) (NASDAQ: WBD) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws.  The WBD class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired WBD securities between February 23, 2024, and August 7, 2024, both dates inclusive (the “Class Period”).  Investors have until January 24, 2025, to seek appointment as lead plaintiff in the WBD class action lawsuit.

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.  WBD’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.  WBD 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.

The WBD class action lawsuit alleges that Defendants, throughout the Class Period, 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.

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If you purchased or otherwise acquired WBD securities between February 23, 2024, and August 7, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page.  You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected].