KTMC brought a class action related to the April 2022 merger of Discovery, Inc. and a unit of AT&T, WarnerMedia, against one of Discovery’s founding shareholders, Advance/Newhouse Communications (“Advance”). The combination formed the company Warner Bros. Discovery, Inc. The lawsuit alleged that Advance promoted its own interests over those of Discovery, Inc. and its public shareholders by threatening to withhold its approval of the deal. Ultimately, Advance was able to extract a $1.1 billion side payment in exchange for its approval of the merger. KTMC alleged that this side payment was improperly extracted and reduced the compensation received by the rest of Discovery’s former stockholders. After mediation, Advance agreed to pay Discovery’s former stockholders $125 million. The settlement was approved by the Court of Chancery.