The suit filed Monday is on behalf of all shareholders who acquired WBD securities between Feb. 23 and Aug. 7.

Warner Bros Discovery said on Monday it would have access to coveted National Basketball Association content for 11 more years under a legal settlement with the league, sending shares of the media company more than 5% higher.

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,

A shareholder has sued Warner Bros. Discovery, the soon-to-be former home of the NBA, for violating securities law by misleading investors on the impact of losing its long-standing rights deal with the league.

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.