Netflix is facing a Class Action Lawsuit Over its Warner Bros. Deal

Netflix

The Netflix purchase of Warner Bros. is far from a done deal with regulatory hurdles needing to be passed, a hostile takeover attempt, and now a consumer lawsuit.

A proposed class action lawsuit was filed on Monday by a subscribe of Warner Bros.’s HBO Max who says the proposed deal threatens to reduce competition. This has been a concern raised by many over the bid which would have the top streaming service purchasing the third largest. The lawsuit states:

Netflix has demonstrated repeated willingness to raise subscription prices even while facing competition from full-scale rivals such as WBD.

US federal antitrust laws allow consumers to sue over mergers and acquisitions.

Netflix said in a statement:

We believe this suit is meritless and is merely an attempt by the plaintiffs’ bar to leverage all the attention on the deal.

Netflix’s proposal to purchase Warner Bros. was announced on Monday followed by a hostile bid by rival Paramount Sundance.


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