Discovery’s $43 Billion WarnerMedia Deal Faces Court Challenge

A group of pension funds are challenging the $43 billion merger between Discovery Inc. and AT&T Inc.'s WarnerMedia division that created the entertainment giant Warner Bros. Discovery Inc.

The investor lawsuits target affiliates of Advance/Newhouse Partnership, a major Discovery stockholder that allegedly got hundreds of millions in side benefits from the deal. One of the two suits also takes aim at AT&T, billionaire “cable cowboy” John C. Malone, WBD chief executive David Zaslav, other leaders of the combined company, and former Discovery board members.

The proposed class actions accuse Malone, Zaslav, and Advance/Newhouse of exploiting their combined influence over Discovery ...