SAN DIEGO, Nov. 26, 2024 /PRNewswire/ — Robbins LLP informs investors that a class action was filed on behalf of persons and entities that purchased or otherwise acquired Warner Bros. Discovery, Inc. (NASDAQ: WBD) securities between February 23, 2024 and August 7, 2024. WBD is a global media and entertainment company that provides a portfolio of content, brands, and franchises across television, film, streaming, and gaming outlets.
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The Allegations: Robbins LLP is Investigating Allegations that Warner Bros. Discovery, Inc. (WBA) Misled Investors Regarding its Financial and Business Prospects
According to the complaint, during the class period, defendants failed to disclose that: (i) WBD’s sports rights negotiations with the NBA were causing, or were likely to cause, the Company to significantly reevaluate its business and goodwill; (ii) 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; (iii) the foregoing significantly increased the likelihood of WBD incurring billions of dollars in goodwill impairment charges; (iv) accordingly, defendants had overstated WBD’s overall business and financial prospects; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Plaintiff alleges that on August 7, 2024, WBD issued a press release announcing 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.” 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.
What Now: You may be eligible to participate in the class action against Warner Bros. Discovery, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by January 24, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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SOURCE Robbins LLP
