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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

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.

Warner Bros. Discovery
Warner Bros. Discovery loses face as CEO gets charged with class action lawsuit

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.”

WB Discovery HBO Max
A new lawsuit could bring down WB after claims of 10 million fake HBO Max subscribers

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.

David Zaslav set to take WB in new direction
David Zaslav’s promises about WB Discovery fall short

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

Written by Diya Majumdar

At 25, Diya Majumdar is inching closer to getting to the bottom of every film and television's history in existence. Having graduated with honors in literature from Miranda House, DU, her passion and profession both include dissecting the world of cinema, with more than 800 published articles on Fandomwire. She is a liberally opinionated person with an overbearing love for Monet, Edvard Munch, and Van Gogh and boasts of being an avid painter of all their troubled works.