White & Case secures complete dismissal of high-profile securities fraud action against Warner Bros. Discovery and senior executives

Global law firm White & Case LLP has secured a decisive and complete victory for Warner Bros. Discovery, Inc. (WBD), Chief Executive Officer David Zaslav and Chief Financial Officer Gunnar Wiedenfels in a closely watched securities fraud action arising from the company's loss of long-standing NBA media rights.

The lawsuit—filed in the wake of one of the most significant media rights realignments in decades—sought to capitalize on investor reaction to the NBA’s landmark more than US$70 billion rights deal with Disney, NBCUniversal and Amazon, which ended WBD’s nearly 40-year relationship with the league. 

Plaintiffs alleged that WBD misled investors about the importance of NBA rights and its ability to retain them, asserting claims based on a handful of public statements made during a period of intense industry scrutiny and rapidly evolving negotiations.

The United States District Court for the Southern District of New York rejected those claims in their entirety.

In a comprehensive ruling, Judge Katherine Polk Failla granted defendants’ motion to dismiss with prejudice—terminating the case at the pleading stage—and denied plaintiffs any further opportunity to amend. The court concluded that plaintiffs failed to plead actionable misstatements or a viable theory of securities fraud, bringing the litigation to a definitive end.

The decision marks a significant victory not only for WBD, but for public companies navigating high-stakes commercial negotiations under intense market and media scrutiny. The ruling underscores that federal securities laws do not convert business setbacks—even those involving marquee assets like premium sports rights—into viable fraud claims.

White & Case's Litigation team was led by partners Jonathan Polkes and Stacy Nettleton, counsel Susan Grace (all in New York) and associates Veronica Gordon (Miami), Michelle Gemmell and Taylor Heywood (both in New York).

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