- Netflix’s bid for Warner Bros Discovery has just been hit with a consumer class-action lawsuit
- It was filed by HBO Max subscriber Michelle Fendelander, who has expressed concern over what the deal could do to the industry
- Netflix has responded to Fendelander’s lawsuit, deeming it ‘meritless’
Netflix’s ongoing legal battle to acquire Warner Bros. Discovery (WBD) just got personal, and now the company is facing its first class-action lawsuit – issued by a HBO Max subscriber of all people.
The lawsuit, which is led by Las Vegas resident and loyal HBO Max member Michelle Fendelander, was filed on Monday at a U.S. District Court in San Jose. Fendelander sued Netflix out of concern that its bid to buy WBD will diminish competition between streaming services, damaging the entertainment industry as a result.
Last week, Netflix agreed to a $82.7 billion deal to buy WBD, meaning that all HBO shows and its flagship streaming platform HBO Max would become part of the Netflix family – including popular franchises such as Harry Potter, Game of Thrones, and the DC Comics franchises.
Since the deal was unveiled, it’s sparked a wave of concern among consumers – especially regarding the potential impact it could have on cinemas and theatrical releases. This is also a concern of Fendelander who, in her lawsuit, has asked the court to order an injunction to stop Netflix from merging with WBD, sharing the following:
‘American consumers — including SVOD purchasers like Plaintiff, an HBO Max subscriber — will bear the brunt of this decreased competition, paying increased prices and receiving degraded and diminished services for their money.’
However, Netflix won’t go down without a fight given its reputation of being one of the best streaming services out there, and has responded to Fendelander deeming her lawsuit ‘merely an attempt by the plaintiffs bar to leverage all the attention on the deal’. In the midst of the legal chaos, Netflix has since reassured consumers that it plans to uphold Warner Bros’ commitment to screening movies in theaters – but Fendelander still isn’t convinced.
Not only could this company merge lead to further price raises – for which Netflix already faces major backlash – but Fendelander has expressed her worry over the creative repercussions, sharing another statement in her lawsuit:
‘The elimination of this rivalry is likely to reduce overall content output, diminish the diversity and quality of available content, and narrow the spectrum of creative voices appearing on major streaming platforms.’
The Netflix-WBD legal battle has yet to reach a conclusion, but its dramatic buildup has caught the attention of Congress, and now even Trump could be having his say in whether the deal goes ahead. Netflix seems determined to come out on top, but with the latest Paramount Skydance $108.4 billion counter bid now on the table, it could go in any direction.
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