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They are suing WarnerMedia for manipulating HBO Max numbers to attract investors

HBO Max is experiencing a critical year since its release. | Font: HBO

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Shareholders sue warnermedia after the company was accused of manipulating its streaming service’s subscriber numbers hbo max.

According to a report from Wrappershareholders found evidence that warnermedia increased to 10 million fake accounts to the real number of subscribers hbomax, hoping that his merger with Discovery materializes.

Application has already arrived

According to the report, the Collinsville Police Pension Board, a group of the company’s shareholders, filed a lawsuit against Warner in New York. The defendants specifically target CEO David Zaslav and CFO Gunnar Wiedenfels.

“warnermedia focused on streaming and ignored other areas of their business, overestimating the number of subscribers to hbo max up to 10 million subscribers,” they explain in the lawsuit.

The lawsuit alleges that in order to carry out this manipulation, Warner included AT&T customers who received an access package to hbomax, whether they are subscribers or not.

hbo maxLaunched two years ago to become a major competitor to Netflix and Disney+, it now has 76.8 million users in the US, Europe and Latin America.

all uphill

warnermedia merged with Discovery into a single company earlier this year.

However, this measure hurt hbomax, undergoes an internal restructuring and also shows a big change in its content, excluding series and films to avoid additional additional costs.

At the time of the merger, Discovery shares were worth 24.78 per share. Now they barely reach 11 dollars.

According to the plaintiffs, any person who bought shares warnermedia after the merger can claim to join the lawsuit, of which Warner Bros. Discovery did not make any statements.

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Source: RPP

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