Warner Bros. Discovery appears to have sidestepped its own legal drama.
A proposed class action lawsuit, helmed by Ohio Attorney General David Yost, alleged that Warner Bros. Discovery concealed negative financial information prior to its 2022 merger with AT&T’s Warner Media, thereby misleading investors.
But earlier this week, U.S. District Judge Valerie Caproni granted Warner Bros. Discovery’s motion to dismiss the case. Caproni ruled that the media company’s leadership didn’t misrepresent streaming service subscriber numbers, content licensing strategy, its plans for CNN+, or Warner Media’s focus on streaming.
The judge said the offering documents Warner Bros. Discovery presented at the time were accurate and CEO David Zaslav was not required to disclose other types of information.
Warner Bros. Discovery declined to comment further on the ruling.
“We are letting the decision speak for itself,” a company spokesperson told Cord Cutters News.
Not long after AT&T’s Warner Media and Discovery $40.4 billion merger completed, the business was completely shaken up. CNN+ shut down after just one month of operation, films were canceled as tax write-offs, and over the next six months, Warner Bros. Discovery reportedly stock fell more than 50%.
Prior to the suit filed by Yost, Warner Bros. Discovery and Paramount sued each other over unpaid streaming rights for the adult cartoon South Park.
Yost wasn’t immediately available for comment.
The news was reported earlier The Hollywood Reporter.