NEW YORK, Sept. 27, 2022 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed on behalf of investors who: (i) exchanged common shares of Discovery, Inc. (“Discovery”) DISCOUNT DISCB, DISCK))) for common stock of Warner Bros. Discovery, Inc. (“Warner Bros.”) WBD pursuant to Discovery’s registration statement on Form S-4 dated February 4, 2022 and joint proxy statement/prospectus filed with the Securities and Exchange Commission (“SEC”) on February 10, 2022; and/or (ii) purchased shares of Warner Bros. common stock on the open market as described in the prospectus.

The lawsuit alleges that at the time the registration statement and prospectus were filed, the defendants either knew of or had access to adverse information about the operation of AT&T’s WarnerMedia business. As later disclosed by the Post-Merger Defendants: (i) WarnerMedia’s HBO Max streaming business had a high churn rate that made the business not “viable” unless the churn rate was reversed; (ii) AT&T over-invested in WarnerMedia entertainment content for streaming without giving sufficient consideration to ROI; (iii) WarnerMedia had a business model to increase the number of subscribers to its streaming service without regard to cost or profitability; (iv) WarnerMedia carelessly focused its investments on streaming and ignored its other businesses; and (v) WarnerMedia had overstated the number of HBO Max subscribers by as much as 10 million subscribers by including as subscribers AT&T customers who received bundled access to HBO Max but did not subscribe to the service. The adverse information was not disclosed to Discovery shareholders in the registration statement or prospectus or otherwise prior to the Effective Date of the Merger. As the true details emerged, the lawsuit alleges that investors suffered damage.

Investors who have purchased or otherwise acquired Discovery stock should contact the company before November…