Faruqi & Faruqi, LLP is investigating claims on behalf of investors Warner Bros. Discovery By Investing.com
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson encourages investors who have suffered losses greater than $100,000 in Warner Bros. Discovery (NASDAQ: ) to contact him directly to discuss their options
If you have suffered losses greater than $100,000 in Warner Bros Discovery between February 23, 2024 and August 7, 2024 and want to discuss your legal rights, call a Faruqi & Faruqi partner Josh Wilson direct on 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, New York–(Newsfile Corp. – January 1, 2025) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential lawsuits against Warner Bros. Discovery, Inc. (“WBD” or the ” Company”) (NASDAQ: WBD ) and reminds investors of The deadline is January 24, 2025 to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its inception in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the following: (1) WBD’s sports rights negotiations with the NBA caused or could have caused the company to significantly reconsider its operations and goodwill; (2) WBD’s goodwill in the networks segment deteriorated significantly as a result of the difference between its market capitalization and book value, continued weakness in certain US advertising markets and uncertainty related to affiliate and sports rights renewals, including the NBA; (3) the foregoing substantially increased the likelihood that WBD would incur billions of dollars in goodwill impairment charges; (4) accordingly, defendants overestimated WBD’s overall business and financial prospects; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 7, 2024, WBD issued a press release announcing its financial results for the second quarter of 2024. Among other items, WBD reported disappointing revenues of $9.71 billion, down 6.3% from to the previous year and missing consensus estimates by $360 million; as well as a net loss of approximately $10 billion due to a $9.1 billion non-cash goodwill impairment charge from the Network segment and $2.1 billion of other one-time accounting effects. WBD disclosed that the goodwill impairment charge “was triggered in response to the difference between market capitalization and book value, continued weakness in the US linear advertising market and uncertainty related to renewals of affiliate and sports rights, including the NBA.”
Following this news, WBD’s stock price fell $0.69 per share, or 8.95%, to close at $7.02 per share on August 8, 2024.
A court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class, who is adequate and typical of the class members and who directs and oversees the litigation on behalf of the putative class. Any putative class member may propose to the Court to serve as lead plaintiff through counsel of his or her choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any recovery is not affected by the decision whether or not you will be the lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information about the conduct of Warner Bros. Discovery to contact the company, including whistleblowers, former employees, shareholders and others.
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To view the original version of this press release, visit https://www.newsfilecorp.com/release/235694
