WB Discovery in the mother of all soups, allegedly had 10 million fake subscribers to deceive shareholders – A class action lawsuit to end its 100-year legacy

Last Friday, WB Discovery was handed a major class action lawsuit that could spell the end of the media and entertainment company. The legacy of the newly created company has been called into question following WarnerMedia’s merger of AT&T with Discovery in April 2022. Discussion, which has been ongoing since May 2021, resulted in the merger, but recent information show misleading figures that now endanger the entire company and all its subsidiaries.

Discovery of Warner Bros.
Warner Bros. Discovery loses face as CEO faces class action lawsuit

Also read: “Zaslav doesn’t know what he doesn’t know. It’s scary’: Talent Rep CEO David Zaslav says WB Discovery CEO faces ‘unfair’ competition from Marvel

WB Discovery faces lawsuit for misleading information

Last Friday, the Collinsville Police Pension Board filed a class action lawsuit in federal court in New York against the chief executive of Warner Bros. Discovery, David Zaslav, and Chief Financial Officer, Gunnar Wiedenfels. The plaintiff has stated that he can produce and represent “hundreds of thousands” others who were victims of misleading information that caused them pecuniary damage as a result of the merger.

“WarnerMedia recklessly focused its investments in streaming and ignored its other lines of business… [and] overestimated the number of HBO Max subscribers by 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.

WB Discovery HBO Max
New lawsuit could bring down WB after claims of 10 million fake HBO Max subscribers

Also Read: “David Zaslav Ruined WB Like Joss Whedon Ruined Justice League‘: Internet Trolls CEO WB Studios after reports reveal they barely have enough money to release 2 movies

The lawsuit further added,

“The Registration Statement and Prospectus and certain of the Defendants’ other public statements contained misrepresentations of material facts or failed to state material facts which were required to be stated therein or necessary in order for the statements contained therein not to be misleading. .”

The Collinsville Police Pension Board owned the pre-merger common stock of Discovery, which was swapped for Warner Bros. Discovery after the April 8 merger. Thus, all persons who purchased WBD shares on the open market after the merger would be eligible to participate in the lawsuit.

Also Read: ‘He’s Out of His Depth’: David Zaslav Ships JJ Abrams Batman: Crusader Caped Out of HBO Max amid $2.39 billion market cap loss

Will this finally be the trial to end all trials?

Even if the evidence continues to mount against WB Discovery, it will only serve as the final nail in the coffin if the trial continues and the defendants lose. In addition to the misleading figures, the plaintiff also states that the company has retained several “adverse information” hidden that could potentially damage the case even more. This all ultimately ties into allegations of three separate SEC violations by WB Discovery.

David Zaslav set to take WB in a new direction
David Zaslav’s WB Discovery promises fall short

Also read: “Who the hell would want this job?

Warner Bros. suffered the brunt of attacks on all fronts throughout the year. The reputation of this century-old company that was already in shambles is today in tatters and decimated beyond recognition. If David Zaslav really manages to wade through the quicksand and rise with his company in hand, it will be nothing short of a miracle at this point.

Source: The Envelope

Leave a Comment

About Us

The Nuherald is an ‘everything under one roof’ news portal that provides you with the latest updates and news from the sports, entertainment, tech, health, and business world. We are one among the members of the renowned digital media network, Globe-News Network.

© 2024 TheNuHerald & The GlobeNews Network