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Warner Bros Discovery Sued For Misleading Investors On NBA Before Losing It
A shareholder sued Warner Bros. Discovery for violating securities law by misleading investors on the impact of losing its long-standing rights deal with the NBA.
Richard Collura filed the suit in New York federal court seeking class action status on behalf of shareholders who purchased WBD stock between February 23 and August 7 of 2024, which is when the media giant took a massive $9.1 billion write-down at its networks segment related in part, it said, to losing the NBA on TNT. “As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.” “During the Class Period, Defendants engaged in a plan, scheme, conspiracy and course of conduct, pursuant to which they knowingly or recklessly engaged in acts, transactions, practices and courses of business which operated as a fraud and deceit upon Plaintiff and the other members of the Class; made various untrue statements of material facts and omitted to state material facts … [to] artificially inflate and maintain the market price of WBD securities,” the said claimed, seeking damages.
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