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

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 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.

Warner Bros. Discovery Inc. and top executives violated federal securities law by failing to disclose to investors the risks accompanying rights renewal negotiations with third-parties, including the NBA,

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.

The lawsuit points to the company recording a $9.1 billion goodwill impairment charge related to the depreciation of its TV networks.