Pomerantz Law Firm Alerts Warner Bros. Shareholders of Class Action Lawsuit and Key Deadlines

Pomerantz Law Firm Issues Shareholder Alert for Warner Bros. Discovery

Pomerantz LLP has issued a strong warning to investors concerning a class action lawsuit filed against Warner Bros. Discovery, Inc. (commonly referred to as WBD) as of January 21, 2025. Shareholders who have experienced financial losses from their investment in WBD securities between February 23, 2024, and August 7, 2024, should take note, as they may have a legal claim against the company.

Details of the Lawsuit

The case has been registered in the United States District Court for the Southern District of New York and is officially marked under the docket number 24-cv-09027. This lawsuit seeks to recover damages for WBD shareholders who purchased securities during the specified class period. Defendants in the lawsuit include not only the company itself but also certain high-ranking officers who may have contributed to the alleged violations of federal securities laws.

WBD, a significant player in the global media and entertainment industry, operates various television networks and holds various content rights across multiple platforms. A key player in its revenue strategy includes television networks like TNT, which has long relied on basketball programming, especially contracts with the National Basketball Association (NBA).

Critical Deadline and Legal Recourse

According to Pomerantz LLP, shareholders have until January 24, 2025, to petition the court for the appointment as Lead Plaintiff in this class action. For those interested, a copy of the class action complaint can be found on www.pomerantzlaw.com. Potential plaintiffs are encouraged to reach out to attorney Danielle Peyton via email or by phone at 646-581-9980, further advised to include their contact details and the number of shares they acquired.

Key Allegations

The allegations outlined in the lawsuit are severe. It claims that WBD and its executives provided materially false and misleading statements regarding the company’s business viability and operational prospects. Critical points raised in the complaint indicate that:
1. Negotiation Issues with the NBA: It is alleged that negotiations around NBA sports rights significantly impacted the company’s market standing and overall goodwill.
2. Deterioration of Goodwill: WBD's goodwill supposedly declined dramatically, primarily due to discrepancies between its market value and book value, softness in U.S. advertising markets, and uncertainties surrounding affiliate and rights renewals.
3. Impending Financial Burdens: The likelihood of WBD facing billions of dollars in goodwill impairments was significantly increased by these situations.
4. Overstatement of Financial Health: The company’s public statements, which highlighted its business and financial health, are alleged to have been fundamentally misleading throughout the class period.

Financial Performance and Stock Impact

The situation worsened on August 7, 2024, when WBD released its second-quarter financial results revealing disappointing numbers. With revenues of $9.71 billion—a 6.3% year-over-year decrease that underperformed market estimates by $360 million—WBD reported a staggering net loss of approximately $10 billion. This figure included a non-cash goodwill impairment charge of about $9.1 billion, emphasized as “triggered” by the concerns surrounding market value and ongoing negotiations. Following this unsettling news, WBD’s shares plummeted by 8.95%, closing at $7.02 on August 8, 2024.

About Pomerantz LLP

Recognized for its extensive work in corporate and securities law, Pomerantz LLP has been a long-standing advocate for shareholder rights. Founded by the reputed Abraham L. Pomerantz, the firm has more than 85 years of experience in supporting victims of corporate misconduct and fraud.

For anyone who invested in WBD and believes they qualify for participation in this lawsuit, the upcoming deadlines are crucial for securing potential compensation. The actions taken in the next few days could significantly influence the outcome for affected shareholders.

For further inquiries and updates, please visit Pomerantz LLP.