WB Discovery in the Mother of All Soups, Reportedly Had Fake 10M Subscribers To Mislead Shareholders – A Class Action Lawsuit To End its 100 year Legacy

WB Discovery was handed a major class action lawsuit last Friday that could mean the end of the mass media and entertainment company. The legacy of the newly forged corporation was brought into question in the aftermath of the merger of AT&T’s WarnerMedia with Discovery in April 2022. The discussion that has been going on since May 2021 had culminated in the merger but recent information shows the misleading numbers that now put the entire company and all its subsidiaries at risk.

Also read: “Zaslav doesn’t know what he doesn’t know. That’s scary”: Leading Talent Rep Claims WB Discovery CEO David Zaslav Dealing With “unfair” Marvel Competition

WB Discovery Faces Lawsuit For Misleading Information

On Friday last, the Collinsville Police Pension Board filed a class action lawsuit in a New York Federal Court against Warner Bros. Discovery’s Chief Executive Officer, David Zaslav, and the Chief Financial Officer, Gunnar Wiedenfels. The plaintiff has stated that they can produce and represent “hundreds of thousands” of other individuals who were subjected to the misled information that has caused them monetary harm in the aftermath of the merger.

“WarnerMedia was improvidently concentrating its investments in streaming and ignoring its other business lines … [and] overstated the number of subscribers to HBO Max by as many as 10 million subscribers, by including as subscribers AT&T customers who had received bundled access to HBO Max, but had not signed onto the service.”

Also read: “David Zaslav Ruined WB Like Joss Whedon Ruined Justice League“: Internet Trolls WB Studios CEO After Reports Reveal They Have Barely Enough Money To Release 2 Movies

The lawsuit further added,

“The Registration Statement and Prospectus and certain of the Defendants’ other public statements contained untrue statements of material fact or omitted to state material facts required to be stated therein or necessary to make the statements therein not misleading.”

The Collinsville Police Pension Board happened to be owners of the pre-merger era Discovery common shares which were traded in favor of the Warner Bros. Discovery ones after the April 8 merger took place. As such, any and all persons who had bought WBD shares on the open market after the merger went through would be eligible to join in on the lawsuit.

Also read: “He’s out of his depth”: David Zaslav Ships JJ Abrams’ Batman: Caped Crusader Out of HBO Max Amidst Losing $2.39B in Market Cap

Will This Finally Be the Lawsuit to End All Lawsuits?

Even as the proofs keep piling up against WB Discovery, it will merely serve as the final nail in the coffin if the lawsuit follows through and the defendants lose. On top of the misleading numbers, the plaintiff also states that the company has kept several “adverse information” hidden that could potentially harm the case even further. All of this finally gets tied up with allegations of three separate SEC violations on WB Discovery’s part.

Also read: “Who the f—k would want that job?”: WB Hunting For its Own ‘Kevin Feige’ Bound to Fail As David Zaslav Reportedly Caught Up Between Zack Snyder and Todd Phillips’ Huge Egos

Warner Bros. has been bearing the brunt of attacks on all fronts for the entirety of the year. The reputation of this century-old company which was already in ruins is now tattered and decimated beyond recognition. If David Zaslav really manages to wade through the quicksand and rise with his company in hand, it will be nothing short of a miracle at this point.

Source: The Wrap