Warner Bros Discovery Wins Dismissal of Ohio AG Lawsuit Over Merger Disclosures

Warner Bros Discovery on Monday won the dismissal of a proposed class action led by Ohio Attorney General Dave Yost, claiming it concealed negative financial information prior to the April 2022 merger of AT&T’s WarnerMedia and Discovery.

The attorney general said offering documents for the merger overstated how many streaming subscribers were paying for content including at HBO and HBO Max; concealed WarnerMedia’s strategies for licensing content and distributing films; and hid the impending demise of the CNN+ streaming service.

Yost, on behalf of the Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio, said that as the truth came out, Warner Bros Discovery’s stock price fell more than 40% over four months, wiping out nearly $25 billion of market value.

Read the source article at Yahoo Finance