StockNews.AI
WBD
StockNews.AI
211 days

INVESTOR ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Warner Bros. Discovery

1. Faruqi & Faruqi is investigating claims against WBD for potential securities violations. 2. WBD's sports rights negotiations may impact business evaluations and goodwill significantly. 3. WBD reported a net loss of approximately $10 billion due to goodwill impairment. 4. WBD's stock fell 8.95% following the announcement of disappointing Q2 2024 results. 5. Investors have until January 24, 2025, to seek lead plaintiff status in the lawsuit.

6m saved
Insight
Article

FAQ

Why Very Bearish?

The significant financial loss and pending litigation could greatly undermine investor confidence, similar to past cases where stocks declined sharply after similar announcements.

How important is it?

The article directly discusses investor losses and potential securities litigation, which could affect WBD's market valuation.

Why Short Term?

The immediate repercussions from the Q2 report and the lawsuit may affect stock performance in the near term, akin to a similar event affecting stocks last year.

Related Companies

WBD
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Warner Bros. Discovery To Contact Him Directly To Discuss Their Options If you purchased or acquired securities in Warner Bros. Discovery between February 23, 2024 and August 7, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).[You may also click here for additional information]Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Warner Bros. Discovery, Inc. ("WBD" or the "Company") (NASDAQ:WBD) and reminds investors of the January 24, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) WBD's sports rights negotiations with the NBA were causing, or were likely to cause, the Company to significantly reevaluate its business and goodwill; (2) WBD's goodwill in its Networks segment had significantly deteriorated as a result of the difference between its market capitalization and book value, continued softness in certain U.S. advertising markets, and uncertainty related to affiliate and sports rights renewals, including with the NBA; (3) the foregoing significantly increased the likelihood of WBD incurring billions of dollars in goodwill impairment charges; (4) accordingly, Defendants had overstated WBD's overall business and financial prospects; and (5) as a result, the Company's public statements were materially false and misleading at all relevant times.On August 7, 2024, WBD issued a press release announcing its second quarter 2024 financial results. Among other items, WBD reported disappointing revenue of $9.71 billion, representing a 6.3% year-over-year decrease and missing consensus estimates by $360 million; as well as a net loss of approximately $10 billion because of a $9.1 billion non-cash goodwill impairment charge from its Networks segment and $2.1 billion in other one-time accounting effects. WBD disclosed that the goodwill impairment charge was "triggered in response to the difference between market capitalization and book value, continued softness in the U.S. linear advertising market, and uncertainty related to affiliate and sports rights renewals, including the NBA."On this news, WBD's stock price fell $0.69 per share, or 8.95%, to close at $7.02 per share on August 8, 2024.The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.Faruqi & Faruqi, LLP also encourages anyone with information regarding Warner Bros. Discovery's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.To learn more about the Warner Bros. Discovery class action, go to www.faruqilaw.com/WBD or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).Follow us for updates on LinkedIn, on X, or on Facebook.Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.SOURCE: Faruqi & Faruqi, LLP

Related News