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WBD.US
id: 1411

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
Collecting participants…