A shareholder sued Warner Bros. Discovery for misleading investors on the impact of losing its long-standing rights deal with the NBA.

Warner Bros. Discovery and CEO David Zaslav were sued Monday by investors who experienced "significant losses and damages" caused by fallout from the studio's rights negotiations with the National Basketball Association.

A lawsuit filed this week in New York federal court alleges that shareholders suffered "significant losses and damages” over the company's inability to hold onto its NBA contract, which prompted Warner Bros. Discovery to take a $9-billion write-down in the value of its basic cable networks, including TNT, which had carried NBA games since 1989.

Warner Bros. Discovery will gain new digital and international NBA rights after the company and league settled a suit over the next NBA TV contract

Warner Bros. Discovery just took care of a very visible issue that had disturbed the market. Find out why WBD stock is a Buy.

Warner Bros. Discovery sued the NBA in July, claiming the league failed to allow the media company to use its so-called matching rights on a package of live games.

Warner Bros Discovery said on Monday it would have access to coveted National Basketball Association content for 11 more years under a legal settlement with the league, sending shares of the media company more than 5% higher.

Warner Bros. Discovery (WBD) is facing a class action lawsuit filed by investors who claim the media conglomerate misled them about the financial impact of losing its NBA broadcasting rights.