Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Warner Bros. Discovery, Inc. (WBD)
NEW YORK, Nov. 26, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Warner Bros. Discovery, Inc. (“Warner Bros.” or the “Company”) (NASDAQ: WBD) securities between February 23, 2024 and August 7, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s sports rights negotiations with the NBA were causing, or were likely to cause, the Company to significantly reevaluate its business and goodwill; (ii) the Company’s goodwill in its Networks segment had significantly deteriorated as a result of the difference between its market capitalization and book value, continued softness in certain U.S. advertising markets, and uncertainty related to affiliate and sports rights renewals, including with the NBA; (iii) the foregoing significantly increased the likelihood of the Company incurring billions of dollars in goodwill impairment charges; (iv) accordingly, Defendants had overstated the Company’s overall business and financial prospects; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 7, 2024, the Company issued a press release announcing its second quarter 2024 financial results. Among other items, the Company reported disappointing revenue of $9.71 billion, representing a 6.3% year-over-year decrease and missing consensus estimates by $360 million; as well as a net loss of approximately $10 billion because of a $9.1 billion non-cash goodwill impairment charge from its Networks segment and $2.1 billion in other one-time accounting effects. The Company disclosed that the goodwill impairment charge was “triggered in response to the difference between market capitalization and book value, continued softness in the U.S. linear advertising market, and uncertainty related to affiliate and sports rights renewals, including the NBA.” On this news, the Company’s stock price fell $0.69 per share, or 8.95%, to close at $7.02 per share on August 8, 2024.
Investors who purchased or otherwise acquired shares of Warner Bros. should contact the Firm prior to the January 24, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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