The State Of Ohio Filed A Lawsuit Against Warner Bros. Discovery

TV & Film

Dec 1

From cancellations to top positions being changed, Warner Bros. Discovery has seen a fair share of controversy since its merger. The company has been able to turn the bad press away in light of the appointment of James Gunn and Peter Safran, the reworkings of the DC division, and a recent team-up with Amazon. As things have begun to settle down for the company, a recent lawsuit from the state of Ohio may just turn things on their head.

In a move to protect “the Ohio Public Employees Retirement System and the State Teachers Retirement System”, Ohio Attorney General Dave Yost has filed a lawsuit against Warner Bros. Discovery. This move comes as they feel Discovery misled investors as to the state of Warner Bros. before the merger, leading to a 52.4% drop in stock following the merger, and losing investors plenty of money as a result. Yost argues that Discovery intentionally withheld information regarding the disarray of the financial situation of Warner Bros., as well as inflating the number of subscribers to HBO Max in order to ensure a smooth transition between the companies to not scare away investors.

RELATED:

Featured

A New Image From HBO's 'The Last Of Us' Focuses On Pedro Pascal And Bella Ramsey

In Yost’s official statement he said,

“Warner Bros. Discovery willfully withheld financial information that it was legally obligated to reveal for one highly self-serving reason – to ensure the merger’s approval. In doing so, it created market distortions that cost Ohio’s pension systems and other institutional investors dearly, and that is not OK.”

As to whether or not this lawsuit will play out to the benefit of Ohio is only for the future to tell. If so, it could theoretically open up a nationwide lawsuit against the company resulting in much more damage to the company. On one hand, the people of Ohio feel they have been cheated; on the other hand, this could also chalk up to a simple risk of investment. Time will tell as to how this plays out, but be sure to keep up to date with Culture Slate to find out the results.

READ NEXT:

Featured