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Discovery Shareholders Win $125M Settlement Of Lawsuit Alleging AT&T Merger “Wasn’t Entirely Fair” To Most Investors
Warner Bros. Discovery is paying $125 million to settle a shareholder lawsuit over the 2022 merger of Discovery and AT&T that created the company.
Once Delaware Chancery Judge Travis Laster approves the agreement, holders of Discovery stock prior to the merger closing date in April 2022 will be eligible to receive funds from the settlement. The Advance/Newhouse Partnership is privately held by the Newhouse family, which owns about 8% of WBD stock as a result of its prior ownership of Discovery shares. The lawsuit alleged that the merger was “not entirely fair,” in the words of Friday’s filing, because it generated payouts of more than $1 billion to select insiders and left common shareholders in the cold.
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