Warner Bros Discovery (WBD) Goodwill Impairment Case

S.D. New York

Court

1:24-cv-09027

Case number

02/23/2024

Class period Start

08/07/2024

Class period End

01/24/2025

Lead Plaintiff motion deadline

$WBD investors filed a lawsuit against Warner Bros. Discovery for misleading them about the financial health of its Networks segment and the impact of NBA sports rights negotiations.
Following the news on August 7, 2024, $WBD dropped by 8.95%.
$WBD investors can join this case to be notified about potential recovery.
Case Details:

Despite declining ad revenue and affiliate challenges, the company claimed "solid footing" during its Q4 2023 and Q1 2024 earnings calls.

In August 2024, Warner Bros. revealed a $10 billion net loss, including a $9.1 billion goodwill impairment in its Networks segment.

The company blamed falling market value, weak advertising revenue, and uncertainty about securing NBA sports rights.

Following this announcement, $WBD dropped nearly 9%.

Based on these events, $WBD investors filed a lawsuit against Warner Bros. Discovery, accusing the company of the following:
It misled investors about its financial health and goodwill valuation.
It downplayed the risks of losing key NBA sports rights and the impact on its business.
Investors believe Warner Bros. Discovery misled them about its financial stability, which became clear when the company overstated its goodwill valuation and downplayed the risks of losing key NBA sports rights.

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

08/08/2024

Filing date

11/25/2024

Lead Plaintiff Deadline

01/24/2025

Warner Bros Discovery (WBD) Goodwill Impairment Case

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