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A group of former Discovery Inc. investors will receive $125 million after settling a lawsuit related to the entertainment company’s 2022 merger with AT&T (NYSE:T) WarnerMedia unit made more than $1 billion worth of improper payments to company insiders.
Pending final approval by Delaware Justice Travis Laster, the settlement will end nearly two years of litigation by a group of pension funds that held Discovery stock before the merger.
The deal requires $100 million from a company owned by the billionaire Newhouse family, a major investor in Discovery Communications, the former operator of the Discovery Channel.
Former Discovery Chairman Robert Mirone and his son Steven are expected to provide the remaining funding, Bloomberg News reported, citing court documents made public on Friday.
The defendants were part of the Advance/Newhouse partnership, which owned preferred stock in Discovery before the multibillion-dollar merger created one of the world’s largest intermediate processing companies.
