LOS ANGELES, Oct. 20, 2022 (GLOBE NEWSWIRE) — Portnoy Law Firm advises Discovery, Inc. (“Discovery”) of Warner Bros. Discovery, Inc. (“WBD”) (NASDAQ: WBD) that a class action lawsuit has been filed on behalf of investors. WBD investors who have lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone at 844-767-8529 or by email: [email protected], to discuss their legal rights, or click here to join the case via www.portnoylaw.com. Portnoy Law Firm can provide a free case assessment and discuss options for investors to pursue claims to recover their losses.
The complaint alleges that the defendants made material inaccuracies and omitted material from the registration statement and prospectus, including that (i) WarnerMedia’s HBO Max streaming business had a high churn rate that made the business not “viable” unless churn was reversed, (ii) AT&T was overinvesting in WarnerMedia’s entertainment content for streaming, not caring enough about ROI, (iii) WarnerMedia had a business model for increase the number of subscribers to its streaming service without regard to cost or profitability, (iv) WarnerMedia was recklessly focusing its investments in streaming and ignoring its other lines of business, and (v) WarnerMedia had overestimated the number of subscribers to HBO Max up to 10 million subscribers, including as subscribers AT&T customers who had received bundled access to HBO Max, but had not signed up for the service.
From April 11, 2022, the first trading day after completion of the Merger, to the date before the Complaint was filed (September 23, 2022), the market price of WBD fell 52.4% from 24.78 $ to $11.79 per share, as the market took notice of the foregoing distorted and omitted facts.
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Lesley F. Portnoy, Esq.
Admitted to the CA and NY Bar