Warner Bros Discovery, the new entity that emerged after Warner Bros and Discovery, Inc merged together, has landed in fresh trouble.
According to The Wrap, a complaint claims that Warner Bros, the company behind popular films like ‘Harry Potter’ and ‘DC,’ inflated the number of HBO Max subscribers by up to 10 million in order to deceive shareholders and obtain a higher price for the acquisition.
The lawsuit further stated that the act contravenes the Securities Act. According to the publication, Collinsville Police Pension Board, a shareholder of WBD, filed the complaint last Friday in New York.
The acquisition does not appear to have helped Warner Bros, which has been having financial issues for years.
David Zaslav, the head of WBD, has been brutal in cancelling other in-development projects and nearly finished films like ‘Batgirl’ in order to claim tax deductions.
The decisions sparked a fierce uproar. However, experts claim that these choices undermine the relationship of trust between the studio and the creatives.
Before that, Christopher Nolan, who had worked for Warner Bros for almost 17 years, made the decision to leave after the company declared in 2021 that it will release every major motion picture on HBO Max and in theatres. Other than Nolan, several other filmmakers disagreed with the choice.
Additionally, Nolan and WB had a falling out over the distribution of his feature film ‘Tenet.’ The movie came out in late 2020, when the Covid-19 pandemic had shut down the majority of movie theatres worldwide.
While WB want to hold off until theatres reopened, Nolan insisted on the film’s release. Although the movie was released, its success was merely fair.
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