(NewMediaWire) - December 05, 2024 - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Warner Bros. Discovery, Inc. (“Warner Bros.” or the “Company”) (NASDAQ: WBD) on behalf of investors that purchased or otherwise acquired Warner Bros. securities between February 23, 2024 and August 7, 2024 (the “Class Period”).If you are an investor in Warner Bros. and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
According to the complaint, throughout the Class Period, the Defendants made materially false and misleading statements and/or failed to disclose to investors that (i) Warner Bros. sports rights negotiations with the NBA were causing, or were likely to cause, the Company to significantly reevaluate its business and goodwill, (ii) Warner Bros. 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, and (iii) the foregoing significantly increased the likelihood of Warner Bros. incurring billions of dollars in goodwill impairment charges.
On August 7, 2024, Warner Bros. disclosed an approximate $10 billion net loss for the second quarter of 2024. The $10 billion loss included “a $9.1 billion non-cash goodwill impairment charge from the Networks segment, as well as $2.1 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses.” The Company press release also stated 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.” Additionally, during the conference call that followed, the Company’s Chief Financial Officer stated “a sports right discussion like the one with the NBA comes into play as a triggering event, which then compels us to re-evaluate our business case.”
Following this news, the price of Warner Bros. stock fell $.69 per share, nearly 9%, to close at $7.02 per share on August 8, 2024.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
