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A group of former Discovery Inc. investors will receive $125 million after settling a lawsuit related to allegations that the entertainment company's 2022 merger with AT&T (New York Stock Exchange:T) The WarnerMedia unit made more than $1 billion worth of improper payments to company insiders.
Subject to final approval by Delaware Chancery Judge Travis Laster, the settlement ends nearly two years of litigation brought by a group of pension funds that had Discovery actions before the merger.
The deal calls for $100 million 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 president Robert Miron and his son, Steven, were expected to provide the rest. Bloomberg News reported, citing court documents made public on Friday.
The defendants were part of the Advance/Newhouse partnerships, which owned preferred stock in Discovery before the multi-billion dollar merger deal created Warner Bros. Discovery (NASDAQ: WBD), one of the largest entertainment companies in the world.
