Discovery Shareholders Win $125M Settlement Of Lawsuit Alleging AT&T Merger “Wasn’t Entirely Fair” To Most Investors
What led to Warner Bros. Discovery's $125 million settlement?
Warner Bros. Discovery agreed to pay $125 million to settle a shareholder lawsuit over its $43 billion merger deal. The lawsuit, filed by a handful of pension funds in Delaware Chancery Court, alleged that the transaction unfairly benefited top-tier investors at Discovery at the expense of everyday investors3.
Who filed the shareholder lawsuit against Warner Bros. Discovery?
A handful of pension funds filed the shareholder lawsuit against Warner Bros. Discovery in Delaware Chancery Court after the $43 billion merger between AT&T's WarnerMedia and Discovery Communications closed2. The plaintiffs alleged that the transaction unfairly benefited top-tier investors at Discovery at the expense of everyday investors2.
What was the main allegation in the shareholder lawsuit?
The main allegation in the shareholder lawsuit was that the $43 billion merger between AT&T's WarnerMedia and Discovery Communications unfairly benefited top-tier investors at Discovery at the expense of everyday investors1. The lawsuit claimed that the merger generated payouts of over $1 billion to select insiders and left common shareholders in the cold.