It is widely known that the case of the merger between hbo max Y DiscoveryPlus It is still ongoing, this after reaching the decision to lower costs and thus earn more money, even original productions were affected. And now, a lawsuit is presumed against the company, which is the result of what appears to be a deception of shareholders.
And it seems that Warner Bros. invented his subscriber numbers hbo max up to 10 million, misleading shareholders in a way that they are violating the Securities Law to complete its merger with Discovery. According to a class action lawsuit that claims it could potentially represent “hundreds of thousands” of affected people.
The incident occurred last Friday in New York on behalf of the Board of Collinsville Police Pensionswith an Illinois-based shareholder who accepted in exchange for his common shares of Discovery Class C before the merger. At the time of the merger, the shares were valued at $24.78M; As of Tuesday, the shares were trading just above $11M.
It is worth commenting that the executive director is appointed David Zaslav and the financial director Gunnar Wiedenfels like the defendants in the case.
This is a snippet of what the lawsuit says:
WarnerMedia was unexpectedly concentrating its investments in streaming and ignoring its other lines of business…and overestimated HBO Max’s subscriber count by as much as 10 million subscribers, by including as subscribers AT&T customers who had received an access package to HBO Max, but had not signed in to the service.
For now, a jury trial for money damages is being sought, alleging three separate violations of the Securities and Exchange Commission.
Via: TheWrap