SAN DIEGO, Oct. 4, 2022 (GLOBE NEWSWIRE) —

The class: Law firm for shareholder rights Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all persons and entities seeking (1) Discovery, Inc. common stock for Warner Bros. Discovery, Inc. (NASDAQ: WBD) common stock pursuant to or attributable to Discovery dated April 4, February , registration statement of 2022 on Form S-4 (the “Registration Statement”) and joint proxy statement/prospectus filed with the SEC on February 10, 2022 (the “Prospectus”), or (2) shares of WBD common stock purchased in the open market attributable to the prospectus up to the date of filing this complaint. The Complaint is also being filed on behalf of Discovery stockholders who, pursuant to the prospectus, exchanged Discovery common stock for WBD common stock.

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What is it about in this case: Defendants made false and misleading statements in connection with the merger between Discovery, Inc. and AT&T, Inc.’s WarnerMedia division.

According to the lawsuit, Discovery and AT&T, Inc.’s WarnerMedia division completed their merger on April 8, 2022. After the merger, Discovery’s former officers — who were named as individual defendants in the class action — ran WBD. At the time the Registration Statement and Prospectus were filed, Discovery and each of the Defendants knew of or had access to adverse information related to the operation of WarnerMedia’s business. However, the defendants failed to disclose this information to Discovery shareholders prior to the merger vote.

Specifically, Defendants failed to disclose that: (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 overinvested in WarnerMedia entertainment content for streaming without giving enough thought to the return on investment; …