Whitney Pastorek
July 29, 2009 AT 08:37 PM EDT

Warner Bros. Home Video has brought a $10 million lawsuit against IWMB, Inc., a California-based company it had contracted to destroy two million surplus DVDs, according to the Hollywood Reporter. The suit alleges that IWMB did not destroy the merchandise, but instead sold the surplus DVDs and Blu-Ray discs to a third party, who sold them at significantly discounted prices. It is estimated that 750,000 of the stolen discs were sold, and 250,000 remain unaccounted for.

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