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

Investors are calling foul over Warner Bros. Discovery's loss of its NBA media rights deal. 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,

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,

After losing broadcast rights to National Basketball Association games in July, Warner Bros. Discovery struck a new 11-year deal with the league that will see the media company’s popular Inside the NBA show move to ESPN in exchange for more limited content rights.

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.