Maks_Lab
A group of former Discovery Inc. investors is set to receive $125M after settling a lawsuit related to allegations that the entertainment firm’s 2022 merger with AT&T’s (NYSE:T) WarnerMedia unit generated improper payouts worth more than $1B to company insiders.
Subject to the final approval of Delaware Chancery Judge Travis Laster, the settlement ends nearly two-year-old litigation initiated by a group of pension funds that held Discovery shares before the merger.
The deal calls for $100M from a company owned by the billionaire Newhouse family, which was a leading investor in Discovery Communications, the former operator of the Discovery Channel.
Former Discovery Chairman Robert Miron and his son, Steven, were expected to provide the remainder, Bloomberg News reported, citing court filings made public on Friday.
The defendants were part of Advance/Newhouse partnerships, which owned preferred shares in Discovery before the multibillion-dollar merger deal that created one of the largest intertreatment firms in the world.