SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Warner Brothers Discovery, Inc. - WBD
NEW YORK, Oct. 10, 2022 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Warner Brothers Discovery, Inc. ("WBD" or the "Company") (NASDAQ: WBD). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether WBD and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On May 17, 2021, AT&T, Inc. ("AT&T") and Discovery, Inc. ("Discovery") issued a press release announcing a definitive agreement to combine WarnerMedia's "premium entertainment, sports and news assets with Discovery's leading nonfiction and international entertainment and sports businesses to create a premier, standalone global entertainment company" (the "Merger"). On February 4, 2022, a definitive Joint Proxy Statement/Prospectus was filed with the U.S. Securities and Exchange Commission in connection with the Merger. On March 11, 2022, Discovery shareholders overwhelming voted to approve the Merger, which subsequently closed on April 8, 2022. On April 11, 2022, shares of the combined company WBD began trading on the NASDAQ. Investors subsequently learned, though a series of post-Merger disclosures, that: (i) WarnerMedia's HBO Max streaming business had an unacceptable churn rate that made the business not "viable" unless reversed; (ii) WarnerMedia was overinvesting in entertainment content for streaming, without sufficient concern for return on investment; (iii) WarnerMedia had a business model to grow the number of subscribers to its streaming service without regard to cost or profitability; and (iv) WarnerMedia had overstated the number of subscribers to HBO Max by as many as 10 million subscribers, by including as subscribers AT&T customers who had received bundled access to HBO Max, but had not signed onto the service.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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